Bringing The $2 Trillion Art Asset Class to Web3

Art represents a $2 trillion asset class that is larger than most people realize, with approximately 90% of tradable art concentrated among top 200 artists

Multiple approaches are being used to bring traditional art to Web3:

• Tokenization of physical artworks
• Fractionalization to enable smaller investments
• Creation of art-backed NFTs
• Development of art indices and derivatives

A community of 1.2 million collectors, investors, and traders has been built around bringing fine art to Web3, with $34 million in tokenized art transactions completed so far

Key considerations for bringing traditional art to Web3:

• Proper regulation of tokens
• Secure custody solutions
• Prevention of unauthorized reproductions
• Chain selection based on artist preferences
• Market data integration for price transparency

Blue-chip artists entering Web3 typically choose Bitcoin or Ethereum due to perceived permanence and stability

Successful art tokenization requires:

• High-quality digital representations
• Clear provenance tracking on blockchain
• Secondary market trading mechanisms
• Integration with existing art market data
• Appeal to both traditional and Web3 audiences

The market focus is on making fine art more accessible through:

• Lower minimum investment amounts
• Increased liquidity
• Broader distribution channels
• New trading products like indices and derivatives