Kagin's Offers Fractional Ownership of Unique $100,000 Specimen Note Through the NFT Blockchain.
May 6, 2025
A unique 1934 $100,000 Gold Certificate Uniface Specimen is being offered through the versatility and security of blockchain technology. Through a partnership with Kagin’s, Inc. and Vici Network, collectors can now acquire fractional ownership of an iconic numismatic specimen.
Believed to be the first such offering, this note is the only known specimen of the highest denominated U.S. banknote.
The Federal Reserve of New York issued the short-lived Series $100,000 Gold Certificate from December 18, 1934, through January 9, 1935, backed by an equal amount of gold bullion held by the Treasury Department. They were issued exclusively for official use in transferring large sums of money between Federal Reserve Banks and were never released or circulated among the public.
Only a few examples of issued notes exist today, and they are all in possession of the U.S. Government. No issued example is, or has ever been, available to the collecting community, making this specimen the only form available to a collector. The popularity of this note is evident on the numerous images in publications worldwide, as well as novelty collector items such as gold foil reproductions of the same design type.
The note, identified in Paper Money of the United States by Arthur and Ira Friedberg as FR#-2413s, is independently graded Choice Uncirculated CU-63 by PMG.
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0:00
all right so how's the uh how's the coin
0:01
market doing is it is it is it hopping
0:04
the
0:05
iconic items um are tough to find the
0:09
really good stuff
0:10
[Music]
0:16
so Don uh you've uh launched an NFT
0:20
program to uh sell uh I guess a a
0:25
fractional ownership of a of a pretty
0:28
rare specimen note of the vaunted
0:32
$100,000 gold certificate of course the
0:35
actual notes themselves were never
0:37
released so you can't you can't actually
0:39
own one of those but you can own a piece
0:42
of the specimen and I wanted to talk to
0:44
you not only about this uh
0:47
particular NFT opportunity and and and
0:50
what gave you the idea to do it and and
0:52
how Kagans is uh offering something very
0:56
unusual for people to be part of but
0:58
also what you think that maybe the
1:00
future fractional ownership of rare
1:02
coins could mean for the rare coin
1:05
market and and and we can kind of dig
1:07
into the crystal ball to see if this is
1:10
a direction that we might see other
1:11
great rarities uh a take so uh tell me a
1:15
little bit about what you're doing
1:19
well this is the uh melding of the
1:21
digital world with the tangible world
1:24
this is the a fractionalization as you
1:27
pointed out of an iconic numismetic item
1:30
where we sell shares in this case it's
1:33
500 shares started out at $1,000 a share
1:37
when we hit over a hundred in two weeks
1:39
then it went to
1:41
$1,150 a share and and so that people
1:45
could who could not own item like this
1:49
most people can't afford
1:52
$550,000 imputed value for all of the
1:56
shares being sold but but but they can
1:59
most people can own a single share or uh
2:03
up up to 20 shares we have a limit on
2:06
how much you can own so it's the melding
2:08
again of the digital world with the
2:11
tangible world where where these items
2:15
are secured by a unique blockchain
2:20
technology nftts
2:23
um were all the thing big fad five years
2:27
ago we actually looked at doing that as
2:30
a way a vehicle for selling other iconic
2:34
items that uh we own um and nothing
2:39
really happened to it it was a big fad
2:41
people were buying images of things
2:44
board monkeys and and other images that
2:48
that went up to the moon and then came
2:50
crashing down so it it kind of had a a
2:53
negative implication we we never got
2:56
rolling on that then and but now what an
2:59
NFT really is a nonfunctional not nonf
3:03
fungeable token but it's really just a
3:08
digital receipt for a unique blockchain
3:11
item that
3:13
protects a person um on that they have
3:17
ownership that can't be changed and
3:21
um you know and and and using that as
3:25
backing and and security on owning an
3:28
actual tangible real world asset so I'm
3:32
going to put on the screen an image of
3:35
this uh this note and and and on the
3:37
Kagan's uh digital uh website you can
3:41
see the subdivision of the note so
3:44
explain exactly what somebody would get
3:48
uh by purchasing one or two or three uh
3:53
NFTts of this note like what what what
3:56
would they get uh and is there a
4:00
physical representation of of what
4:02
they're getting uh would would would
4:05
there be some sort of protection if they
4:07
forgot their password to their wallet or
4:10
were unable to you know remember what
4:13
exactly they did here uh so what what
4:15
exactly are you doing and then what's
4:17
happening to the note itself
4:21
so it's pretty easy to just go to our
4:25
website Kagan Digital or go to Kagans
4:27
it'll send you to our website and just
4:31
see the note and press a button or click
4:35
a button uh and go to uh buying one of
4:41
the shares there's 500 shares so you can
4:44
now if you buy five shares you can
4:47
actually pick out the actual block
4:50
there's 500 blocks so you can pick out
4:52
the actual one that you want subject to
4:55
it being bought gotten by by somebody
4:58
earlier right so that's something that's
5:00
new uh in this world there have been um
5:05
companies that have sold
5:06
fractionalization or shares in a in a in
5:10
a car or or real estate or or baseball
5:14
cards or or artwork but not not that are
5:19
protected by an NFT um blockchain
5:22
technology and and not in the numismatic
5:26
world uh like that so so again you're
5:30
going to be part of an elite community
5:33
who owns this particular iconic item and
5:36
as you pointed out it's a specimen it's
5:39
the only one uh when I bought it 20
5:43
years ago for my personal collection
5:45
because I like this sort of thing um
5:48
there were thought to be three of them
5:50
now we know there's only one uh was not
5:53
certified now it's certified it has its
5:55
own Freeberg number which is as you know
5:58
our reference work on paper currency so
6:00
you're going to be an owner of this
6:03
unique item and furthermore it's the
6:06
only
6:08
$100,000 denomination US note you can
6:12
own that's out there
6:15
so after now we're as 25% of the shares
6:20
were sold in over two weeks the next 100
6:23
shares or I guess would be 75 and
6:27
probably less than that is available at
6:29
1150 but we give incentives um you can
6:33
buy a group of five and if you do that
6:37
um you can click on uh VIP
6:42
uh link and a person will white what
6:45
they said white glove the purchase for
6:48
you very easy walk you through it you
6:51
can buy the on on your own you can buy a
6:54
couple of shares using a credit card but
6:57
if you want to use buy more there's a it
7:00
creates a a red flag or something for
7:03
the credit card company so you can buy
7:05
them by using a check or you can even
7:08
buy them by using
7:10
cryptocurrency so so the the there's
7:13
that process you're limited to only
7:15
buying 20 shares because we want as many
7:18
people as possible to to own part of
7:21
this and it's a way again of people in
7:23
my industry and your industry the
7:25
numismatic industry to only own only
7:28
something
7:29
that couldn't be would be out of out of
7:32
reach but it's also
7:35
um the first time this digital world
7:39
will have the availability of a
7:41
numisatic item and learn about that and
7:44
because it's a $100,000 bill I mean that
7:48
kind of resonates with people even
7:50
outside of the numismatic world so hey
7:54
you know so there we sell a lot of
7:56
thousand even thousand notes even some
8:00
500 5,000 and $10,000 notes which are
8:03
six figure notes right but um but people
8:08
out and and to people that are not
8:10
necessarily in the numismatic mainstream
8:12
collector well now in the crypto world
8:17
um and investment world people can see
8:20
that this thing exists not only exists
8:23
but they can be a part owner of that too
8:25
so we have gotten well over you know
8:28
half of the people that have bought the
8:30
shares so far are not from the newmatic
8:32
world
8:34
so that's the that that's what we have
8:37
here we believe it's just the beginning
8:41
of the fractionalization of numismatic
8:44
items maybe other collectibles too so I
8:48
think this is the next evolution in
8:50
numismatics i think it's part of the
8:52
future where people can own fractional
8:55
parts of an item that's cool interesting
8:59
has a story we're not selling just
9:02
anything we're selling things that you
9:03
couldn't get otherwise pretty much we're
9:07
selling the the Picasso of numismatics
9:10
here so that's the that's the thought
9:13
that's the theory and so far it's
9:15
working
9:17
i'm going to ask speaking of artwork and
9:20
um I'm sure this question has had to
9:22
come up so when you think about a piece
9:26
of currency or this specific piece of
9:27
currency
9:29
um there's a design elements you know uh
9:33
and then there's uh uh areas where there
9:36
are no design elements uh and since you
9:39
are subdividing it and I'm I'm sure this
9:41
is clearly being subdivided in a
9:44
geometric geometric way not to give you
9:47
the uh you know pieces of of uh the
9:50
engraving uh do you do you find that
9:53
there there there are clients or people
9:55
who are curious like I'm going to buy
9:58
five of these but I don't want all white
10:00
space i want a little bit of Woodro
10:02
Wilson in my in my in my NFT or how how
10:05
do you what are there different values
10:08
depending on where the cut is uh
10:10
actually um we thought about that too
10:13
but actually it's an incentive to buy
10:15
sooner than later okay obviously the
10:19
first ones that went were the eyes or
10:21
the nose or some people are buying the
10:24
the one and the 100,000 or the G in gold
10:28
or whatever so it's incentive to buy
10:30
sooner than later you get your first
10:32
opportunity we didn't realize just how I
10:36
kind of had an a thought that yeah
10:39
people will want to pick there's many
10:42
people that don't care i mean they just
10:44
want to own a share but in our world we
10:48
care about what things look like right
10:50
and they're cool so yeah brother when I
10:54
I wanna own that one and by the way
10:57
Charles we added something that's not in
11:00
the digital world at all as a matter of
11:03
fact we I I sent you an image of of the
11:08
tombstone that this is what uh in the in
11:11
a in the stocks and bond world you get
11:14
when you buy a share or something well
11:17
we came up with this concept that will
11:21
put a representation of that note right
11:24
that you own the $100,000 note and a
11:28
share a certificate for the share that
11:31
you own and you could embed it in lucite
11:34
and you could put it on on your desk and
11:36
say "That's what I own i own that and I
11:40
own that spot on that note." So it's
11:43
it's and it's not surprising looking
11:46
back but um but many of the people who
11:51
have bought especially those of us in
11:52
the numismatic world who have bought
11:54
shares they really like that idea so
11:58
what is the disposition of the note
12:00
while the uh while the um I I'm assuming
12:04
here that uh the NFT is active until a
12:08
certain point when the node is going to
12:10
uh change hands i I'm I'm sure Kagans is
12:13
going to control the node and when it
12:15
goes to market or if it gets sold if a
12:18
if a if a client comes to you and and
12:20
offers you the right price for that note
12:22
I'm I'm sure it's for sale and and I'm
12:25
I'm assuming that is like the instant
12:27
when people who are fractional owners of
12:30
the note get to profit off of their
12:32
position so what is the current
12:34
disposition of the note and and what
12:36
mechanism do you have in place to be
12:38
able to execute a trade on the note uh
12:41
if the uh situation is advantageous
12:45
the notes held in a safe deposit box
12:48
until I take it on display at a coin
12:50
show or somewhere else um we might have
12:54
a display just for the shareholders
12:57
maybe in a major city but we are
13:01
planning on having the note available uh
13:04
at the fund summer fund show in July in
13:08
Orlando and it'll be on display and
13:11
anybody who's a shareholder can actually
13:13
take and hold the
13:15
bill um that's the disposition of it now
13:19
we have had offers on the note but I I
13:23
won't I won't entertain anything at the
13:25
moment that's not uh quite advantageous
13:28
to the shareholders so like I mentioned
13:32
the imputed value that we based it on
13:34
was a number that was very close to what
13:37
I had turned down before all this
13:39
happened for the note years ago uh years
13:42
ago and that is was the imputive value
13:45
like 550,000 and we had a buy it now
13:49
number uh at 650,000
13:53
well now that all the
13:56
thousand shares have been sold and we're
13:59
selling now shares at
14:01
$150 the buy it now price is
14:04
$700,000 somebody comes along and wants
14:07
to talk about that um hey it's just like
14:11
any other coin deal you know hey by give
14:14
me the money you get the note right but
14:16
uh and then we
14:18
instantly pay off all the shareholders
14:20
their money and their profit and they
14:23
get uh probably the inside uh uh ability
14:27
to buy into the next NFT
14:31
um and be one of the first ones to again
14:34
pick your pick your spots um so that
14:38
that's the plan now we could have it for
14:41
a year or two or three you know these
14:44
iconic items have done quite well over
14:47
time um I suspect we'll probably and
14:51
somebody will come along probably by the
14:53
end of the year and say "Hey you know
14:56
they want the whole note." Uh only one
14:58
person could actually own the whole
15:00
thing so so there you know I've had my
15:03
pleasure of owning it now it's somebody
15:05
else's but but it isn't just one now I
15:08
got lots of co-owners actually I don't
15:11
own the node anymore it's in the NFT so
15:15
but now there's a lot of an elite
15:17
community of people yeah that can say
15:20
"Hey I own this iconic item." And and
15:22
and you know there'll be some
15:25
communication you know there'll be some
15:27
other promotional items some other
15:29
incentives we're coming up to ideas all
15:31
the time we're looking for feedback
15:34
we're tweaking what this looks like uh
15:38
all the time uh answering questions put
15:41
it on the FAQs and and make it easy for
15:45
people to be a owner in something they
15:47
couldn't otherwise
15:49
you know the idea of doing this when you
15:52
kind
15:53
of when you kind of project forward and
15:55
and what might be
15:57
possible you know it seems like the a a
16:01
it seems like a trend of uh sort of
16:04
numismatic uh ingenuity that's been
16:07
going around lately is this idea of a
16:09
blind box uh purchase where you know you
16:12
buy the the the hope of uh getting
16:15
something more valuable than what you
16:16
put into it um that you're seeing
16:19
several market makers uh play around
16:21
with and and some collectors being
16:23
interested in uh but it it seems like
16:26
the the the fact that there are so many
16:29
great coins that are out of reach for
16:32
most collectors just due to their rarity
16:34
and their importance and and
16:36
desiraability for the elite collector
16:40
that um taking a position you know for
16:43
a,000 or $2,000 into you know maybe the
16:46
next million-doll coin or something like
16:49
that it seems like that that really is
16:51
sort of an aspirational kind of a
16:53
positive appeal
16:55
uh kind of a proposition for somebody
16:58
and I wonder do you feel like you know
17:02
properly handled with by you know
17:05
respected dealers responsible dealers
17:09
that this could be a real opportunity of
17:12
broadening the appeal of some of these
17:14
great coins and to a more broader
17:17
audience than you know being stuck in a
17:20
you know millionaire billionaire sort of
17:22
cycle where we h we just have to find
17:24
those guys to buy these great coins that
17:26
we could probably more democratize it
17:29
and and and bring more people into uh
17:32
serious uh numismatics through this kind
17:35
of um idea you said it as well as I
17:38
could even better um absolutely
17:42
aspirational sure democratic democ
17:46
democratization of uh iconic numismatic
17:49
items or just a real world tangible i
17:55
think think about it i think you're a
17:57
visionary you understand the
17:59
implications this isn't going to be the
18:02
only one whether we do more or others uh
18:05
this is the first
18:09
fractionalization secured by blockchain
18:11
technology in the numismatic field it
18:14
won't be the last there'll be more be
18:18
more opportunities for people to own
18:21
items that they never thought they could
18:24
before and you know it's part what's
18:27
what represented to them i mean it's
18:30
part of your your your mo you get
18:32
emotionally attached as a numispotist as
18:35
a coin collector to some of the items
18:36
that you buy i've heard it referred to
18:39
as this is my baby you know this
18:41
collection of coins you know I'm an
18:43
auctioneer i get consignments all the
18:45
time and and it's tough for some people
18:49
to let go but their kids didn't have an
18:51
interest or whatever it is right we
18:53
understand this and and and now more
18:58
people can be involved and you don't
19:02
have to shell out a half a million
19:04
dollars or a million dollars you know
19:07
for an iconic numismmetic item and you
19:11
know and maybe just as the there's other
19:14
collectibles that this world that this
19:16
could be uh a format for so yeah I think
19:20
this is the next thing in numismatics
19:23
uh next thing in the digital world i
19:25
think this is u has legs and will
19:29
continue to grow yeah and and as you're
19:32
saying Don I mean I think you know the
19:34
NFT is uh you know it in in some
19:38
respects I I guess that's the uh the
19:41
totem for the actual item but but as as
19:44
this idea maybe gets more prevalent in
19:47
in our industry I think for collectors
19:50
it's going to be absolutely essential
19:51
that you're participating in I you know
19:54
programs like this from
19:56
reputable dealers with a track record
19:59
with assurityity that the the the the
20:02
actual item is on in in in storage that
20:06
you know that you don't want to I don't
20:08
think you want to buy NFTts from people
20:09
calling you on the phone that you've
20:11
never done business with because there's
20:13
no guarantee they even own the the
20:14
product so I think that the big the big
20:16
the big challenge for this idea is going
20:19
to be the uh the securization of the uh
20:23
of the item and you know Kagan's
20:26
obviously has a almost century long uh
20:29
history now at this point uh but but
20:32
you're going to but but I think as as as
20:34
leaders in the industry we're going to
20:35
have to make sure that that these um
20:38
these notes are are secured and and and
20:41
um and that we're selling something that
20:44
uh that people actually have a stake in
20:47
so that that's going to be the thing
20:48
that I think the trust building that you
20:50
know people like uh you know companies
20:52
like Kagans and others who get involved
20:54
in this are going to have to make sure
20:55
that they're taking care of that detail
20:59
yes indeed and I and I I think it's
21:01
that's important and um we don't take
21:05
that lightly we before we launched we
21:08
wanted to make sure you know we've done
21:11
our due diligence not just on our
21:13
partner VC ventures and and network that
21:17
uh have built the uh built the platform
21:20
and and and the the ability to people to
21:23
e easily navigate buying this
21:27
NFT and to be as we say shareholders in
21:31
history now but um we want to make sure
21:34
it's done correctly because we see this
21:37
as a format for going forward and maybe
21:41
not just in the numismatic world so
21:44
So we're taking the long-term view of
21:47
that we're taking the long-term view of
21:48
the note of all the NFT items um we want
21:54
to do it right we wanted to make sure
21:55
that people are protected as well as
21:58
have a shot um at making some money but
22:01
more importantly to me and to collectors
22:04
is you know the pride of ownership is
22:06
something they couldn't own otherwise
22:09
well Don good luck with the NFT idea i
22:11
think it's I think it's a great idea uh
22:14
and it's uh always interesting to see
22:16
what what Kagans brings to the market
22:18
and certainly uh you control no shortage
22:22
of very interesting fascinating
22:25
treasures with historical import um
22:27
thinking that Quint and other things um
22:30
and uh and uh Kagans has always been at
22:34
the forefront of some of the most
22:35
interesting numismatic items in the
22:38
market and uh and so I'm excited about
22:41
it uh and we'll see how it how it goes
22:44
and I'm sure when that note sells and
22:46
you have the first $750
22:49
$800,000 uh uh numismatic item tied to
22:53
an NFT that sells it'll be big news it
22:56
will be big news indeed my wife will be
22:58
very happy too
23:00
sure thing all right Don have a great
23:02
weekend i hope you guys uh take it easy
23:05
out there in the West Coast uh wish I
23:08
was out there myself
23:10
anytime you're welcome thank you for
23:12
having me on Charles all right take care
23:15
all right

