Art Tokenization Platform Development: Fractional Ownership on Polygon

Executive Summary

TokenMinds supports Client X in developing an art tokenization platform. The platform enables fractional ownership of physical artworks from Client X.

To provide easy access for anyone, the platform was developed with a simple onboarding process. Users can use their email and a custodial wallet to access the platform and manage their fractional ownership. Payments are also available in EUR fiat, facilitating purchases and resale settlements. Fiat settlement can run via StraitsX in Singapore, or equivalent rails.

Development highlights:

• Polygon chain for lower fees on frequent fraction transfers.

• ERC-1155 for fractional units under one token standard.

• IPFS for pinned metadata with tamper-evident references.

• Proof artifacts for custody and traceability.

Client Overview

Client X

This client has a collection of physical artworks that they want to monetize. Therefore, the client plans to launch a new platform to make the art publicly accessible and fractionally owned by many people.

Industry: Art

Client X’s Objectives

• Launch a platform for fractional ownership of the artwork.

• Provide easy access for prospective buyers through simple onboarding.

• Support fiat payments for purchases and resale settlements.

• Launch a controlled resale marketplace with corridor pricing rules. 

Client X’s Challenges

• No blockchain-based ownership system

The project required a new tokenization stack from scratch.

• Needed access for non-crypto buyers

The platform required email onboarding and custodial wallets.

• Required fiat-first payments for all transactions

The platform needed fiat purchase and resale settlement flows.

• Required custody proof and verifiable metadata

The platform needed traceable metadata records and proof artifacts. 

TokenMinds Solutions

1. Built a tokenization platform for fractional art ownership.

2. Built a simple onboarding process on the platform.

3. Integrated fiat payments for buying and reselling.

4. Implemented verifiable metadata and custody proof artifacts. 

Easy Access Art Tokenization Platform for Everyone

The platform was designed to make fractional art access simple. 

✅ Easy signup

✅ Easy purchase

✅ Easy resale settlement

1. Email Signup

Users sign up with email and create an account fast.

2. Custodial Wallet Support

The platform provides a custodial wallet inside the account. The wallet tracks fractional ownership on the platform.

3. Fiat Payments

The platform supports EUR fiat for purchases and resale. Fiat settlement can run via StraitsX in Singapore, or equivalent rails.

Verifiable Ownership and Artwork Records for Users

All purchases remain verifiable for clear ownership tracking. Polygon records ownership updates when users buy or resell. This approach supports transparent records for Client X and users.

• Polygon Ownership Records

The platform records each fraction under ERC-1155 tokens on Polygon. The ledger tracks ownership and transfers across users.

• IPFS for Artwork Data Traceability

IPFS pins artwork metadata for each tokenized listing. The platform links metadata records for consistent traceability.

• Proof Artifacts for Custody & Provenance

The platform generates a proof pack for each artwork record. Users access custody artifacts from the patron dashboard.

• Resale Controls for Secondary Trading

The marketplace applies a ±15% corridor on resale pricing. Admin controls manage resale settings and limits per artwork.

End-to-End Art Tokenization Platform Workflow

Publishes Artwork Listing 

→ User Signs Up With Email 

→ Platform Provisions Custodial Wallet 

→ User Buys Fractions With EUR Fiat 

→ Platform Records Ownership on Polygon 

→ Platform Generates Proof Pack 

→ User Lists Fractions for Resale 

→ Marketplace Applies Price Corridor 

→ Platform Settles Resale in Fiat

Before vs. After 

Art Tokenization Platform Development Results

100% Full Platform Scope Covered

✅ Onboarding

✅ Payment setup

✅ Resale workflow

✅ Proof records

Build an art tokenization platform with TokenMinds

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FAQs

1. What is art tokenization and why use Polygon?

Art tokenization records art ownership as digital tokens on a blockchain. Fractional tokens represent smaller shares of one physical artwork. Polygon keeps transaction fees lower for frequent fraction transfers. Polygon also confirms transfers faster than many main chains.

2. How does IPFS support metadata traceability?

IPFS stores artwork metadata as a content-based hash reference. The hash changes when the metadata content changes.  The platform can store the IPFS reference alongside ownership records. This linkage helps verify artwork details across systems over time.

3. What are the benefits of ERC-1155 for fractional art tokens?

ERC-1155 stores many token units under one contract. This model fits fraction issuance and transfer tracking.  ERC-1155 also reduces contract overhead versus many separate tokens. The platform can manage supply rules under one standard.