Blockchain pioneer: VP Bank taps into new areas of growth

VP Bank recognised the opportunities of tokenisation early on. To date, it is the only bank worldwide that digitises collectibles in a secure legal framework in the blockchain.

It has been successfully using the new software solution since late 2021 and has already tokenised a variety of paintings and watches, mapping them on the Ethereum blockchain. Private clients and intermediaries benefit not only from efficient, secure business processes, but also from more diverse investment options and optimised risk diversification.

Assets that were previously not bankable can thus be divided and transferred as desired. The assets are integrated directly into the bank portfolio, performance analyses and reporting, including tax reporting. They are also easy to manage via e-banking.

This provides a framework for holistic asset management with end-to-end compliance.

For VP Bank, tokenising assets opens a new door to opportunity in its core area of business, for example in inheritance and succession planning. The bank is also now in a position to venture into new fields of business, different asset classes and previously untapped customer groups such as galleries, art museums, art foundations and art-selling platforms.

Tokenisation is also an appealing proposition to artists, especially if they’re interested in selling artworks, in their entirety or divided into parts. It also paves the way for innovative art projects and collaborations. In early 2022, Art Basel organised an exhibition featuring an art collection that included both real and virtual versions of art in a high-resolution graphical metaverse, marrying traditional assets with modern innovation. Showcasing art in a digital context – in the form of a virtual art gallery in a metaverse – opens up a whole host of potential ideas, many of which will trickle down into the services offered by VP Bank.

VP Bank intends to continue on the path it has taken. With GFT, VP Bank wants to develop further token-based offerings for clients and offer its new services through its international operations. An important prerequisite for this is a secure legal framework in each of the regions its subsidiaries are based in (comparable to the Token Act in Liechtenstein). The bank also intends to expand its partner ecosystem, particularly in the areas of art valuation, lending against securities and logistics. It will thus play an active part in exciting art projects – partly because of the visual impact of art, but also for emotional reasons.