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Tokenized collection of Scotch single malt whiskey launches on the Singapore Stock Exchange

Rare Cask Holdings has a collection of tokenized rare whiskey listed on the Singapore-based Hg Exchange. The premium whiskey collection “Casks of Distinction” was marked in the Zilliqa blockchain under the token standard ZRC-2.

Saayan Choudhury, Senior Director Business Technology at Zilliqa, commented on the whiskeys in the token collection to Cointelegraph:

“The Casks of Distinction are a collection of high quality single malt scotch kegs kept and aged in Scottish distilleries including Port Ellen 1979, Mortlach 1993, Caol Ila 1990, Benrinnes 1992 and Talisker 1989 it is estimated to be will mature between 2022 and 2025 “.

Port Ellen, ranked 10th on the top 10 distillery list by Rarewhiskey101, is in great demand with investors.

Tokenized collection of Scotch single malt whiskey launches on the Singapore Stock Exchange
Tokenized collection of Scotch single malt whiskey launches on the Singapore Stock Exchange

Only accredited investors can own token shares of the rare whiskey collection. Casks of Distinction token holders can trade the asset on the HGX platform or receive physical deliveries of the actual whiskey bottle based on the number of digital “coins” they hold.

HGX, a Singapore-based private digital asset exchange, is one of Zilliqa’s partners. As part of the 2020 Ecosystem Report, the blockchain project highlighted the tokenization of high-value collectibles such as rare whiskey as one of its goals for 2021.. HGX COO Willie Chang commented on the listing as follows:

“Our list of the world’s best whiskeys as a guarantee is a good example of this. This project is based on the Zilliqa technology and also points out the importance of the blockchain for the democratization of investments. “

For Zilliqa, the tokenization of the premium whiskey collection underscores the importance of blockchain technology to drive investments in illiquid assets. In 2018 The Scottish whiskey market has been valued at nearly $ 5 billion, with an estimated market size of more than $ 7.8 billion by 2027.

As the first asset-backed value offering for HGX, Zilliqa says it will closely monitor several key metrics in order to evaluate the tokenization company. According to Choudhury These focal points include asset growth as well as the return on investment for traders and the percentage of tokens sold to participants within certain time frames to measure long-term demand.

Zilliqa also claimed that the blockchain-based origins for rare whiskey would also improve traceability and accountability in the industry. Zilliqa said the network’s ledger will have detailed records of dates such as the year of production, distillery and transfer of ownership.

Zilliqa is not the first to symbolize whiskey. As previously reported by Cointelegraph, a Kentucky distiller sold around $ 20 million worth of bourbon whiskey in March 2020.

From real estate to art to corporate stocks, asset tokenization is becoming a new use case for blockchain adoption. In September 2020, the fintech startup Reinno started a real estate tokenization project valued at 237 million US dollars.

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