The Avalanche (AVAX) blockchain foundation has announced a program called Avalanche Vista, which will purchase $50 million of tokenized assets minted on the network. This move is part of an effort to bring more digital versions of traditional investment products, such as equities, credit, real estate, and commodities, to the layer 1 blockchain. Tokenization is a popular trend in crypto this year, with both traditional finance (TradFi) and crypto-native firms offering government bonds in the form of blockchain-based tokens. According to the Boston Consulting Group, the market for tokenized assets could reach $16 trillion by 2030.
Moving parts of the asset administration process on-chain allows issuers to have one workflow and one system of record, enabling a better, more seamless user experience for service providers and investors, said Siddhartha S, founder and CEO of structured finance platform Intain.
Ethereum is the most popular network for tokenized assets, but smaller blockchains such as Stellar, Solana, and Polygon also have sizable market shares. Avalanche is an Ethereum challenger smart contract platform offering faster transactions and scaling capabilities. The tokenization fund follows the blockchain’s initiative for financial institutions to test and deploy blockchain-based services on one of its subnets. Last September, KKR tokenized a part of its private equity fund with Securitize using the Avalanche network.