Seychelles’s national stock exchange, MERJ Exchange is set to introduce tokenized supercars to global investors through a partnership with CurioInvest, a supercar tokenization platform, according to a press release Friday.
MERJ is compliant with the highest international regulatory standards and the listing could cover up to 500 tokenized supercars worth over $200 million on the exchange.
Explaining MERJ’s standing in the global stock market, Jim Needham, the exchange’s head of digital strategy said:
MERJ Exchange is the only regulated market globally that can support digital securities from end to end. […] Through its partnership with MERJ Exchange, we are creating an access point for these investors that is compliant through the full cycle of exchange, clearing, settlement and registry.
One Dollar Investable Vintage Cars
The first supercar on the slate is reportedly a $1.1 million Ferrari F12tdf, which will be stored and managed in a vault Stuttgart. Interestingly, Ferraris account for 60% of the cars sold for over $5 million, and CurioInvest said the cars are investable with one dollar.
Supercars as an asset class are consistently one of the best-performing assets in the world, beating the likes of traditional asset classes, including collectables such as watches, fine wines, and jewellery.
They outperformed all other collectable assets making of returns of 91% and 288%, respectively, over five to ten years now. Cars see an average return of 334% for the past decade, the exchange said, citing a recent Knight Frank Luxury Investment Wealth Report.
The buying is expected to be led by regions with restrictions on auto imports like China, and institutional investors said Needham, who also noted that their partner [CurioInvest] already pent up high demand from institutional investors like wealth managers and hedge funds.
Amid a strong passion for supercars, coupled with the desire to democratize the ownership, both entities will Integrate blockchain technology to car ownership during a blockchain programme at one of the world’s renowned universities, Oxford University.
In August 2019, MERJ announced its first-ever tokenized listing on its national exchange for global investors; thus, bridging the gap between traditional financial markets and distributed ledger technology (DLT). The following month of that year, the exchange revealed it had partnered with U.S. broker-dealer Jumpstart and custodian Prime Trust to enable accredited American investors partake in its tokenized offerings.
