Seychelles-based Merj Exchange to launch trading of tokenized supercars
Seychelles-based security token exchange MERJ Exchange announced its intention to launch the trading of tokenized supercars in cooperation with Liechtenstein-based collectible cars tokenization startup CurioInvest.
MERJ makes fractions of supercars tradable
The regulated exchange plans to list up to 500 rare and luxury cars worth over $200 million, according to a company press release. The first car to hit the exchange will be a $1.1 million Ferrari F12tdf, which is being stored and maintained in a vault in Stuttgart, Germany.
Collectible cars have been an asset class reserved largely for the super-wealthy. However, CurioInvest will enable anyone with as little as one dollar to invest in fractions of a luxury car through the purchase of a blockchain-powered digital token linked directly to the value of a specific car.
“MERJ Exchange is the only regulated market globally that can support digital securities like this. CurioInvest has identified pent up demand from hedge funds and wealth managers. Through MERJ Exchange, CurioInvest can create an access point for these investors that is compliant from end to end,” said Jim Needham, head of strategy at MERJ Exchange.
Luxury cars as an asset class
It may be surprising to hear for traditional (and crypto) investors but cars are a legitimate asset class. Classic cars, specifically, are actually one of the best performing alternative asset classes of the last decade.
According to the 2019 Knight Frank Luxury Investment Wealth Report, classic cars have outperformed popular alternative asset classes such as fine art, jewelry, and wine. Over a five- and ten-year period, classic cars have generated ROIs of 91 percent and 288 percent respectively.
Investors who want to gain exposure to this promising asset class will soon be able to do so thanks to blockchain-powered tokenization. Even small investors with little disposable investment capital will be able to add vintage cars into their portfolios.
“Most investors have had to sit and watch as elite asset classes outperformed equities and bonds. CurioInvest and MERJ offer these investors a unique way to access these assets, tokenized on a distributed ledger, and available on traditional securities markets infrastructure. This is the best of all worlds,” said Fernando Verboonen, CurioInvest’s founder and CEO.
The Seychelles-based MERJ Exchange is cementing its position as one of the most innovative securities exchanges in the world with the addition of tradable supercar tokens. Currently, the trading platform already enables investors to trade a range of security tokens, which include both tokenized equity and debt.
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Alex Lielacher, Khareem Sudlow