Avalanche continues to build bridges with the traditional finance world.
Global bank Citi announced Wednesday that it used Avalanche—the blockchain behind the 10th biggest cryptocurrency, AVAX—to explore the tokenization of private funds.
The global bank said that it worked with Wellington Management and WisdomTree to carry out its proof-of-concept trial. The takeaway? “Smart-contract capabilities” could be used to “deliver new functionality and operational efficiencies.”
Citi said that private markets have a “complex and manual” infrastructure. Avalanche’s tech—specifically smart contracts—could help move assets around in a quick and efficient fashion.
“By testing the tokenization of private assets, we are exploring the feasibility to open-up new operating models and create efficiencies for the broader market,” said Nisha Surendran, emerging solutions lead for Citi Digital Assets, said in the announcement.
Avalanche is an Ethereum competitor that encourages developers to build applications upon its network. Other blockchains—like Ethereum’s—can be comparatively slow and costly. Avalanche promises a cheap and fast blockchain.
Last November, investment banking giant J.P. Morgan said it had used the Avalanche blockchain to tokenize portfolios in streamline portfolio management.
Investors Eyeing Up Solana and Avalanche as Cash Flows Into Funds
Money continued to flow into crypto investment funds last week, with investor altcoin interest centered on Solana and Avalanche, according to a new report. While investors were mostly focused on Bitcoin, funds giving exposure to Solana and Avalanche last week received $3 million and $2 million, respectively, digital asset fund manager CoinShares said on Monday. Renewed interest in Solana, the blockchain behind the sixth biggest cryptocurrency by market cap, SOL, and Avalanche, the network on whi...
AVAX is now priced at $41.34 , a 6% 24-hour rise, according to CoinGecko.
Edited by Ryan Ozawa.
