Avalanche Allocates $50M to Buy Tokenized Assets
- The Avalanche Foundation has allocated $50 million to buy tokenized assets minted on the blockchain.
- The program has been titled “Avalanche Vista,” and it aims to “support and demonstrate the value of tokenization.”
- The goal is to demonstrate the effectiveness of on-chain finance and accelerate the growth of tokenization.
- John Wu, President of Ava Labs, said that the program seeks to bring trillions of dollars into the DeFi space.
The Avalanche Foundation has announced the allocation of over $50 million to purchase tokenized assets that will be created on the native blockchain of the non-profit organization. Tokenization is a method that involves the minting of a digital representation of a real-world asset, or RWA, on a blockchain. Governments and central banks around the globe are experimenting with the tokenization of real-world assets.
According to the official announcement, the program has been titled “Avalanche Vista,” and it aims to “support and demonstrate the value of tokenization, the process of creating an on-chain digital representation of an asset, item, or thing—something that Avalanche is designed to facilitate with greater speed, scalability, and customizability.”
“Asset tokenization isn’t just the future of capital markets, it’s a critical driver of the present,” said John Wu, President of Ava Labs. “The groundswell of momentum across institutions building on-chain has been astounding, and the Avalanche Foundation is taking a big leap forward with this initiative.”
The announcement noted that the allocation of $50 million represents the Avalanche Foundation’s commitment “to driving forward a financial system that’s more accessible, efficient, and cost-effective through the use of Avalanche’s novel consensus mechanism, unique Subnet architecture, and technical innovation.”
The Avalanche Foundation made it clear that the goal is to display the effectiveness of on-chain finance and accelerate the growth of tokenization by “demonstrating the merits of applying blockchain rails to historically more manual and operationally intensive use cases, including asset issuance, settlement, transfer, and administration.”
Additionally, Avalanche Vista will take into consideration the tokenization of assets across the full liquidity spectrum, including equity, credit, real estate, commodities, and those that are blockchain-native.
Tokenization “creates a faster, more efficient way for companies to issue assets, individuals to own them, and everyone to transfer value,” Wu told TechCrunch while adding that the goal is to tokenize the world’s assets:
“Vista is our next show of commitment to do that. It’s not just dollars involved, but commitment to help web2 players work with us and explain tokenization.”
Wu added that with time, Avalanche Vista seeks to tokenize US Treasurys and money market fund shares, allowing them to be potentially used as collateral in DeFi pools. He said that the “overall goal is to bring these trillions of dollars of assets into DeFi, so that we can use these new mechanisms for trading, borrowing, [and] lending, but with the scale of institutional assets.”
As reported earlier by BitcoinWisdom, Avalanche had also recently partnered with Amazon’s AWS “to accelerate enterprise, institutional, and government adoption” of the blockchain. Ava Labs also officially joined AWS Activate, a program specially designed for startups and early-stage entrepreneurs.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
