The foundation Avalanche alloue 50 million dollars for the purchase oftokenized assetsi.e. real assets. It hopes to encourage tokenization of assets on its blockchain.
Tokenization, “in the long term (…) will play a monumental role in the evolution of our ecosystem”, declared Joseph Chalom, head of strategic partnerships at asset management giant BlackRock, in June.
The challenge is to process existing assets, including illiquid or illiquid real estate, for example, on the blockchain and through smart contracts. BCG estimates the market for tokenization of illiquid assets at $16,000 billion by 2030.
A boost for tokenization on Avalanche
It is therefore vital for blockchain networks to capture a share of this value. This is the ambition of theAvalanche Foundation. It announces the launch of Avalanche Vistaa $50 million initiative.
These funds will go to the purchase of tokenized assets or “off-chain” assets mined on the Avalanche blockchain. The program is designed to demonstrate the benefits of tokenization and Avalanche’s strengths in this field.
The $50 million allocation reflects the Avalanche Foundation’s commitment to promoting a more accessible, efficient and cost-effective financial system through the use of Avalanche’s new consensus mechanism, unique Subnet architecture and technical innovation,” posts its foundation.
Priority to liquid assets: equities, credit, commodities…
Vista is designed for liquid assets. The spectrum is broad, covering in particular equitiescredit, thereal estatethe raw materialsblockchain’s native assets.
Avalanche is not starting from scratch in this tokenization sector. September 2022, KKR tokenized a private fund on Avalanche with Securitize. This enabled the company to digitize the stake in its benchmark product, HCSG II.
The foundation also cites IntainMARKETSa tokenized administration platform and marketplace for asset-backed securities, built as an Avalanche Evergreen subnetwork.
With Avalanche Spruceblockchain enables institutions to use the testnet environment for a variety of applications and assets to experiment with on-chain or OnFi finance.
Quality assets for the crypto ecosystem
Asset tokenization isn’t just the future of capital markets, it’s a key driver of the present,” says John Wu, president of Ava Labs, who sees the beginnings of a groundswell among institutional investors.
In an interview with RoyalsBlue.comSociete Generale Forge’s CEO was already highlighting the interest of the crypto ecosystem for real assets.
The market suffers from “a lack of good quality assets. Most of the corners currently trading are highly volatile and inherently risky. And the 2022 episodes have added to the distrust”.
The TradFithrough tokenization, therefore represents a source of “quality assets, such as OFH Tokens”, for crypto finance, which expresses “a great appetite” for these tokens.
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