VP Bank tokenises the first watch in Liechtenstein
On Wednesday 18 May, VP Bank tokenised the first watch in Liechtenstein. An iconic vintage Audemars Piguet watch, a Royal Oak 14802ST, is now represented on the blockchain. The showcase of this tokenisation took place in the Vintage Lounge of the Vaduz watch store Huber. Norman J. Huber, owner and CEO of Huber Uhren Schmuck Anstalt, has owned the watch for 30 years. “The watch will always belong to the collection of the owner family and remain in the heart of the company,” says Hansjoerg Roshard, watchmaker and manager of the vintage department at Huber. At the event, guests learned how the tokenisation of physical assets works and what advantages Norman J. Huber derives from representing his watch as a digital asset on the blockchain.
Rights in real assets become digitally transferrable
Tokenisation is the process of distributing and tracking real-world rights on a digital blockchain. In the case of Norman J. Huber’s watch, the tokens represent ownership rights, meaning that the holder of the tokens is also the legal owner of the underlying watch. This means that, for the first time, ownership rights to real assets can be modified, transferred and divided. This process is made possible by the innovative Liechtenstein blockchain law – the TVTG –which guarantees a secure legal framework for the token and the underlying physical object.
This becomes particularly relevant when, for example, a watch collector is thinking about passing on her or his collection to the next generation. It is precisely in this case that tokens are the perfect mechanism to ensure an equal and fair distribution of the collection among all beneficiaries as co-owners. But that’s not all. Token owners have a real-time overview of their positions on our eBanking portal, including asset statements and tax reports. This makes managing your collection as easy as checking your bank account because it’s essentially done through your bank account.
VP Bank combines innovation and tradition
“Surveys of our key clients about tokenisation services show that there is overwhelming interest in digitising collectible items such as art works or watches,” explains Thomas von Hohenhau, Head of Client Solutions at VP Bank. “After tokenising the first painting last December, we immediately received inquiries from a number of interested clients." Thomas von Hohenhau further states that clients value VP Bank’s approach, which combines innovation with its tradition as a trustworthy private bank. “Tokenisation at VP Bank is done according to the new blockchain law of Liechtenstein. In this respect, we have a clear advantage over other providers, who often operate in unregulated legal grey areas.”