Templum, Inc. (“Templum”), a provider of award-winning patent-pending capital markets infrastructure for alternatives and private securities, announced that it powers Masterworks’ secondary market.
Masterworks, LLC (“Masterworks”) is transforming the art market providing investors direct access to purchase and trade shares in multimillion-dollar works of art by artists like Picasso, Monet and Basquiat.
As investors have looked for better returns and new opportunities outside of traditional markets, alternative assets have risen to meet the demand. According to the most recent Deloitte Art and Finance Report, over the last ten years, art and collectibles have demonstrated their ability to maintain and appreciate in value.  Masterworks CEO Scott Lynn pioneered the democratization of the art market in 2017 by securitizing Andy Warhol’s Colored Marilyn (Reversal Series). This has paved the way for both small and large investors to gain exposure to art without spending millions on a painting or tens of millions on building a portfolio.
“With Masterworks’ growth, we have seen an increase in investors looking to diversify their asset portfolios with us. As a result, we continue to improve our investor experience offering greater transparency, speed, and scale,” said Lynn. “Templum’s Alternative Trading System (“ATS”), along with its robust trading platform including a matching engine, order management, and market data, uniquely delivered through its API infrastructure, is the natural next step in ensuring an enhanced investor experience.”
Today’s investment environment is evolving. Younger investors are exceptionally tuned to recent developments in art investment products and services. As retail investors look to marketplaces like Masterworks, there is a growing shift, and institutional wealth managers will need to consider changing where they have traditionally invested. Masterworks is well-positioned to continue its market dominance and growth enhanced by Templum’s tech-enabled platform.
“We are pleased that Masterworks chose Templum to provide its trading solution. The continuous trading model enabled by Templum will increase investor engagement and expand investor opportunities with Masterworks,” said Christopher Pallotta, CEO and founder of Templum. “Fractional securities have tremendous potential for investors. As they look to diversify their holdings, marketplaces with tech-enabled platforms backed by sophisticated tools and technology, like Templum, are positioned to take the lead and differentiate themselves.”