Zilliqa and the tokenization of a million dollar whiskey

Whiskey glass symbolic of the tokenization of whiskey via the Zilliqa platform.

With the Casks of Distinction token, Zilliqa has created a system that the investor can turn into face value or a fine drop if desired

That alcoholic beverages, especially wines, are viewed by some speculators as an investment is nothing new. In the digital currency space, however, there are not too many examples of this. The blockchain platform Zilliqa has now tokenized a rare whiskey collection entitled “Casks of Distinction”.

This emerges from an official Zilliqa blog post . This was made possible by the collaboration with Rare Cask Holdings Pte Ltd. This 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).

Essentially, this means that Zilliqa’s asset-backed tokenization enables accredited investors to own a portion of this previously illiquid asset. The token value is therefore directly linked to the market value of the whiskey. Upon reaching maturity and bottling of the whiskey, investors can also trade their tokens on HGX for cash value. Alternatively, investors can choose to receive a bottle of whiskey from the underlying barrel for each token.

Especially fine whiskey as an inflation-proof investment

Ultimately, it is BaaS (Blockchain as a Solution) that made this special investment model possible. As a founding member of HGX and an official technology supplier, Zilliqa used smart contract technology to tokenize these kegs. This means that the investors also receive a certificate of authenticity about the origin. Full transparency and traceability are given at all times. The Casks of Distinction whiskey tokens are minted and managed by Zilliqa’s fungible token smart contract – the ZRC-2 standard .

The title Casks of Distinction is only given to the rarest and highest quality whiskeys from the best barrels that have been stored and matured in the Scottish distilleries. In fact, there are only about 50 whiskeys every year that are given this title by absolute experts, the so-called master blenders . Some of the whiskeys in this illustrious circle immediately sold for over a million pounds. These include, for example, barrels from leading distilleries such as Port Ellen, Mortlach, Caol Ila and others.

Since, despite the high price, the number of bottles of the expensive whiskey actually decreases over time, the remaining units gain even more in value. In terms of investment strategy, the whiskey is an excellent hedge against long-term inflation. As the market for limited items is skyrocketing, tokenization could be the next frontier for the ownership of luxury goods. Sneakers are also one of the consumer items for which strictly limited editions sometimes achieve astronomical prices.

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