A succes story
Liqwith facilitates Encrypt Ventures with art platform,
ByeleX provides the software
Liqwith, a Byelex client, came up with the request to upgrade their platform to make it suitable as an art investment platform for Encrypt Ventures. This platform was supposed to give interested parties the opportunity to buy art by issuing tokens per painting. Because tokens allow customers in a simple way to obtain a piece of ownership of one of the famous paintings for example, this method is attractive to attract many and especially smaller investors. The platform can thus make art ownership possible for a much wider audience.
A great challenge for ByeleX, which would further develop the blockchain platform, and had a tight deadline for doing so. Due to the drive of both the project management team and the development team and especially the customer, the entire technology stack was upgraded in the short term and made suitable for this specific use case. This was done in collaboration with the legal experts at La Gro, a renowned law firm, who developed a robust legal framework for this specific case. Today, this Liqwith client curates art by top painters such as Gaugain and Goya!
If you are also interested, take a look at encryptventures.com
The Challenge: Bringing a vision to life
The ambitious goal: To create a platform that bridges the gap between high-quality art and low-threshold investment opportunities. A technological solution was needed that could securely link precious paintings by famous artists such as Goya and Gaugain to their digital twin using a token that was both technically and legally sound while providing a user-friendly experience for international investors. In addition, a legal structure was needed that complied with the evolving European regulations in the field of MiCAR.
The Solution: A Full-Stack Triumph
ByeleX took up the challenge. We designed and developed the entire technology stack – everything from the back-end infrastructure to the front-end interface – specifically tailored to the needs of the client, together with the client and of course with La Gro who had designed the legal framework. Security was paramount, given the costly art involved, so we implemented state-of-the-art encryption and blockchain-based verification to ensure that every transaction was transparent, compliant, and tamper-proof.
At the same time, we worked closely with La Gro, a reliable legal partner, to create a comprehensive legal framework. Not only did we have to meet current standards, the platform also had to be future-proof. Based on our knowledge of regulatory landscapes, we ensured that the setup did not conflict with MiCAR, which regulates crypto-assets in the EU, while also being in line with possible MiFID II requirements for financial instruments. For a deeper dive into how we navigated these regulations, check out the news article on our website, “Why equity tokens and NFTs are not covered by MiCAR,” in which we explain why certain tokens are outside the scope of MiCAR.
The Result
A scalable, intuitive platform capable of managing a growing portfolio of art investments with ease. The platform can scale quickly while maintaining compliance and with the security that comes with it.
No challenge too big
This project is an example of what we can achieve when technology and vision are aligned. In consultation with Liqwith, we have turned a bold idea into a fully operational reality in a short period of time, combining technical innovation with legal legislation. The platform is such a success that more and more new paintings and investors are being attracted by Encrypt Ventures.
For more information about tokenization, please refer to Liqwith
Liqwith offers companies and investors the opportunity to tokenize financial and physical assets, such as stocks, bonds, energy, water, data, and art. By converting these assets into digital tokens on the blockchain, Liqwith improves liquidity and accessibility to markets that are traditionally geographically or regulatorily restricted.