Zilliqa and the tokenisation of a multi-million dollar whisky
With the Casks of Distinction token, Zilliqa has created an investment that investors can turn into cash or a fine wine if they wish.
The fact that alcoholic beverages, especially wines, are seen as a store of value by some speculators is not news. In the field of digital currencies, however, there are not yet too Bitcoin News Trader many examples of this. The blockchain platform Zilliqa has now tokenised a rare whisky collection, titled „Casks of Distinction“.
This is according to an official blog post from Zilliqa. This has been made possible through a collaboration with Rare Cask Holdings Pte Ltd, which is a wholly owned subsidiary of PrimePartners Corporate Finance Holdings (PPCFH). The token is now listed on the Southeast Asian member exchange Hg Exchange (HGX).
This essentially means that Zilliqa’s asset-backed tokenisation empowers accredited investors to own a portion of this previously illiquid asset. The token value is therefore directly linked to the market value of the whisky. Furthermore, when the whisky reaches maturity and is bottled, investors can trade their tokens on HGX for cash value. Investors can alternatively choose to receive a bottle of whisky from the underlying cask for each token.
Particularly fine whisky as an inflation-proof store of value
Ultimately, it is BaaS (Blockchain as a Solution) that has made this particular investment model possible. As a founding HGX member and official technology provider, Zilliqa has used smart contract technology to tokenise these barrels. This simultaneously provides investors with a certificate of authenticity about the origin. Full transparency and traceability are provided at all times. The Casks of Distinction whisky tokens are minted and managed by Zilliqa’s fungible token smart contract – the ZRC-2 standard.
Only the rarest and highest quality whiskies from the best casks stored and matured in Scottish distilleries are given the title Casks of Distinction. In fact, there are only about 50 whiskies each year that are given this title by absolute experts, the so-called master blenders. Some whiskies from this illustrious circle immediately achieve a price of over a million pounds. Among them are casks from leading distilleries such as Port Ellen, Mortlach, Caol Ila and others.
Since, despite the high price, the number of bottles of the expensive whisky actually decreases over time, the remaining units gain even more in value. In terms of investment strategy, whisky thus represents an excellent hedge against long-term inflation. As the market for limited-edition items skyrockets, tokenisation could be the next frontier for luxury ownership. Trainers are also one of the consumer items where strictly limited editions sometimes fetch almost astronomical prices.