Institutional NFT

NFTs (Non Fungible Tokens) are tokens that represent ownership of unique assets, an NFT has one owner at a time. NFTs are being deployed in art, games, music, loans, and in future will represent ownership of any unique element, such as a car or a house.

NFTs attract a lot of attention - but in the world of crypto, a lot of their use is speculative, and not up to the standards expected by clients of institutions. For example most NFTs used today, don't actually have a strong way of representing what RIGHTS the token holder holds. Even worse, many NFTs simply point to a web address, and when something goes wrong, owners may end up with an NFT of a 404 page. This is not an acceptable outcome for clients of a bank.

However, NFTs have many applications as "financial instruments". They can represent the ownership of anything unique, So on FinP2P the first use case is LOANs. To achieve the required institutional-grade quality, on FinP2P, every asset comes with cryptographically signed certificates which guarantee the rights of the owner.

Institutional NFTs on FinP2P represents ownership of unique real world assets, published to FinP2P by a FinP2P Financial Organization. The organizations issues the NFTs on their platform of choice, and then publish the NFT Assets to the FinP2P network, with the associated KYA (Know Your Asset) certificates - which define the asset and the associated rights of the owners of the NFTs in the asset.

The NFT issued by a FinP2P Router shares the same semantics as any other Assets on the FinP2P network, hence the owner of the NFT may offer to sell their NFT ownership to other users on the network by the existing means of secondary trading available on the FinP2P network or may use the NFT itself as collateral for other transactions.

All such transactions are routed to, and need to be approved by the Asset Router (the issuer of the NFT), which may decide to block a secondary trade, for example for regulatory reasons, or enable them only to specific recipients etc.

A use case for an Institutional NFT on the FinP2P Network is a Pledge NFT which may represent a Loan, this Loan can be sold on the FinP2P Network to other users on the network.

The Resource Service is used to share information about the NFT Asset between FinP2P Routers, where the Asset Service, is facilitating asset transactions. Primary Sale is disabled for NFTs, and on Issuance a single Owner is assigned, with an amount of 1. and the NFT may then be transferred using Secondary IOIs.