Art investment has long been the playground of the ultra-wealthy, with masterpieces selling for millions at high-profile auctions held by Sotheby’s and Christie’s. But that’s starting to change. In recent years, a handful of online securitization platforms, such as Masterworks, Maecenas, and Artory, have begun leveraging blockchain technology to offer fractional ownership of masterpieces. Yet amid a wave of crypto hype and failed fintech ventures, one big question remains: how can these platforms gain legitimacy with art investors?
What Is Art Securitization?
Art securitization is a novel way of investing in fine art. Think of it as turning a multi-million-dollar painting into a mosaic of micro-investments, where each tiny piece represents a fractional ownership. Platforms like Masterworks make this possible by dividing masterpieces into art shares, allowing investors to buy in for as little as $10. Once an artwork is fully securitized, these art shares become tradeable on a secondary market, much like stocks. In doing so, individual investors can hold a financial stake in a Monet or a Picasso.
How Do Art Securitization Platforms Gain Legitimacy?
In a market long dominated by elite auction houses, art securitization platforms promise greater transparency, safer transactions, and lower investment thresholds. But are investors convinced? How can these platforms distinguish themselves from the flood of failed fintech scams? New art securitization platforms, entrants to the long-existing art market, require legitimacy with investors in order to secure a primary source of stability and survival. Our research examines effective approaches to gain legitimacy with art investors.
Literature suggests two distinct and divergent approaches for new ventures to gain legitimacy: conforming to norms and conveying distinctiveness. On one hand, new ventures can gain trust by aligning their practices with art market norms. Such practices include articulating partnerships with established organizations, being a member of a known class, conforming to stakeholder expectations (i.e., expected level of return), and taking advantage of knowledge and resource spillover. On the other hand, art securitization platforms may convey their distinctiveness by adopting novel technologies like blockchain and forming entrepreneurial identity.
Our study adopts cases of four leading art securitization platforms, Maecenas, Masterworks, Otis, and Artory to investigate how legitimacy is achieved. We analysed the 6,306 social media posts from art securitization platforms across LinkedIn, Instagram, Facebook. The social media posts offered insight into how art securitization platforms communicate with and convince investors. We coded each post based on legitimacy-achieving approach reflected in the post. We then draw on the positivity of 2,510 post comments to measure how their legitimacy is perceived by investors. The comment positivity gives us a real time measure of how investors respond to platforms’ legitimacy achieving efforts.
The finding of our study suggests two key takeaways:
- Investors Are Seeking Novelty
Art investors aren’t just buying artworks, they are seeking novelty. Platforms that showcase cutting-edge technology and a unique entrepreneurial identity are perceived as more legitimate and appealing. For instance, when Maecenas announced its blockchain-powered trading model and accepted cryptocurrency payments, investors described it as “pure genius”. Beyond technology, investors are also drawn to the uniqueness of the entrepreneurs themselves. They respond positively to posts that highlight the entrepreneur’s unique backgrounds, motivations, and personal stories. Investors are convinced by narratives of entrepreneurs leaving a nine-to-five grind to pursue their passion for art, or livestreaming their daily routines and behind-the-scenes operations. These novel use of technology and personal touches builds legitimacy and trust.
- Norm Conformance is Not Essential
Among all norm-conformance practices, conforming to stakeholder expectations is the only effective legitimacy-achieving approach. In simple terms, investors do expect financial return, but give no credit to whether a platform partners with established art organizations or is a member of art associations. Interestingly, investors care less in business-as-usual practices. Rather than copying what auction houses do, art securitization platforms adopting advanced technologies and forming unique identities are more likely to be trusted.
What Does This Mean for Art Entrepreneurs?
Art entrepreneurs shouldn’t be afraid to break from convention. Legitimacy no longer depends solely on institutional networks or industry credentials. Instead, investors are drawn to platforms that offer a compelling entrepreneurial story, revealing not just what the venture does, but who the entrepreneur is in day-to-day reality. By showcasing their distinctiveness, entrepreneurs can build a sense of relatability and trust that traditional credentials alone can’t provide.
About the Article
Liu, J., Lee, B., & Rentschler, R. (2025). Leveraging entrepreneurial identity and technology: legitimacy of art securitization platforms. Journal of Cultural Economics, (2025). https://doi.org/10.1007/s10824-025-09529-1
About the Authors
Jiaxin Liu is a Lecturer in Management at University of South Australia
Boram Lee is a Senior Lecture in Arts and Cultural Management at University of South Australia
Ruth Rentschler is a Professor in Arts and Cultural Leadership at University of South Australia
About the Image
TLC Jonhson, Blockchain Technology, via Flicker (CC0)
