ART SECURITY TOKENS

THE BACKGROUND

Art Security Tokens (AST) allow you to own and trade fractional ownership of fine art masterpieces in a regulated and transparent marketplace.

Artemundi and Sygnum Bank, partnered and tokenized Picasso’s Fillette au béret painting. It marked the first time the ownership rights in a Picasso, or any artwork, were broadcast onto the public blockchain by a regulated bank, enabling investors to purchase and trade “shares” in the artwork called Art Security Tokens (ASTs).

ASTs facilitate access to digital marketplaces and reduces the art market’s entry barriers. Under Swiss banking regulations, institutional and private investors may buy, sell or trade fractionalized ownership of blue-chip artworks, starting from 1000 CHF per token on the blockchain-based trading platform.

Why tokens?

Tokens are the new securities. Think of shares. But technologically advanced and really efficient.

What is different now?

  • Technology allows direct ownership.
  • Technology transforms art into bank-grade securities on the blockchain.
  • Technology allows fractionalization of the asset for diversification.
  • Technology allows liquidity on secondary exchanges.
  • Technology makes the underwriting, ownership, and tradability direct, safe, and accessible with the click of a button.
  • Technology significantly reduces cost and counter-party risk by providing peer-to-peer transactions between buyers and sellers.
  • Technology and smart contracts “if > then”, implement commands or instructions instantly, without the possibility of human error.

Why Sygnum Bank?

  • Trust
  • Expertise; Sygnum is the world’s first digital asset bank, licensed by FINMA (Swiss Financial Market Supervisory Authority).

Why Switzerland?

  • Switzerland is a pioneer and an early adopter of DLT (Distributed Ledger Technology) regulations, making it one of the few jurisdictions that recognize securities natively issued on a blockchain.

ANDY WARHOL, Four Marilyns, 1979-86

ANDY WARHOL, American (1928 – 1987)

Paintings depicting Marilyn Monroe, while being scarcely 3% of the paintings by Warhol sold at auction since 2000, represent 17% of the total turnover. It is remarkable that works depicting Marilyn are constantly outperforming Warhol’s overall market index, Warhol’s paintings only index as well as the Artprice Global Index, by far. Further, all black and white versions offered at auction throughout history were sold, an impressive 0% BI (bought-in) ratio.

Accredited and institutional investors can own a share of Four Marilyns, with legal certainty of their ownership on the artwork. 5,000 Art Security Tokens (ASTs), fully recognized under the Swiss DLT legislation, can be subscribed directly through Sygnum’s e-banking platform.

Date of issuance: November 3, 2022
AST symbol: WHL1
Custodian: Sygnum Bank
ISIN number: TBA

Nominal value: CHF 5,000,000
Current market valuation: CHF 5,765,000
Number of tokens: 5,000
Token value: CHF 1,089.97
Minimum purchase: 10 tokens, CHF 10,899.70
Offering period: 60 days
Investment horizon & life cycle: 5 years + 3 years to execute the exit
Secondary marketplace: SygnEx (after the offering period)
ROI of comparable works: (27 & 20 year period) 16.56% – 19.09% respectively
Sharpe ratio: 2.4

PABLO PICASSO, Fillette au Béret, 1964

PABLO PICASSO, Spanish (1881 – 1973)

The tokenization of Fillette au béret represents two additional breakthroughs for the art market. By transforming art into a tradeable, bank-grade security on the blockchain, liquid secondary markets like Sygnum’s SygnEx can directly connect buyers and sellers. This then eliminates the need for intermediaries, reducing transactional costs and bringing much-needed industry transparency.

Picassos have a proven track record for continual appreciation in value, and Fillette au béret has been subject to Artemundi’s rigorous examination, which is based on more than 30 years of experience in art investment.

Date of issuance: October 2021
Tokens issued: 100%
AST symbol: PIC1
Custodian: Sygnum Bank
ISIN number: CH8301001400
Life cycle: 96 months
Trade: SygnEx exchange open daily

Nominal value: CHF 4,000,000
Latest market valuation (6/22): CHF 4,750,000
Unrealized ROI: 18.75%*
*(before management and custody expenses)

SALVADOR DALÍ, Hidden Faces, 1952

SALVADOR DALÍ, Spanish (1904 – 1989)

The artwork was the cover of Salvador Dalí’s book Hidden Faces in the 1952 edition. The bust of Leonardo’s Mona Lisa forms the center of the composition and is repeated further behind in the surreal landscape that Dalí constructed with few lines running towards a horizon of mountains in the far distance. The faces of the Mona Lisas are partially covered with colorful butterflies that remind of Venetian masks leaving space for the figure’s eyes and adorning her, while sort of disguising her appearance.

There is a third repetition of the bust in even further distance and presumably it is another Mona Lisa, however, here Dalí covered the figure’s face with a brown cloth, leaving it anonymous and unidentifiable.

Coming soon!

Joan Mitchell, Untitled, ca. 1962

JOAN MITCHELL, American (1925 – 1992)

Joan Mitchell’s Untitled from ca. 1962, painted shortly after settling in France, presents a vivid composition with brushstrokes intensifying and culminating in the centre of the canvas. The artist united dark blues and greens with red tones on a bright ground of whites, which is prominent on the outer edges and especially the lower part of the painting.

Following the increasing abstraction that had entered her style since her French adventure, Mitchell became an active participant in the “New York School”. In 1951, the artist exhibited among other representatives of the group in the famous “9th Street Show” organized by Leo Castelli and was able to establish herself as an important figure of the male dominated world of Abstract Expressionism.

Mitchell’s mid-century paintings may be her most sought-after. Today Mitchell is one of the most valuable woman artist alongside Frida Kahlo, Georgia O’Keeffe, Agnes Martin and Artemisia Gentileschi.

Joan Mitchell has ascended to an art market titan.

Similar paintings to Untitled can be found in museum collections around the world. The Mitchell-Monet retrospective and survey at Foundation Louis Vuitton, San Francisco Museum of Modern Art (SFMOMA) and Baltimore Museum of Art (BAM), is one unprecedented dialogue between the works of two exceptional artists.

Under due diligence