The Avalanche Foundation has announced Avalanche Vista, a $50 million program to buy and promote tokenized assets on its blockchain network. The initiative aims to showcase the benefits of tokenization for various sectors and advance on-chain finance.
Tokenization is the process of creating a digital representation of a real-world asset on a blockchain network. It can create a faster, more efficient, and more accessible way for companies to issue assets, individuals to own them, and everyone to transfer value.
The Avalanche Foundation, the organization behind the Avalanche blockchain platform, has unveiled its new initiative, Avalanche Vista, which will allocate up to $50 million to purchase tokenized assets minted on its layer-1 blockchain.
Tokenizing Diverse Assets
The Avalanche Vista initiative will consider assets across the full liquidity spectrum, including equity, credit, real estate, commodities, as well as those that are blockchain-native.
The initiative seeks to highlight the value of tokenization in different sectors and demonstrate how blockchain technology can improve tasks like asset issuance, settlement, and administration.
The initiative follows other milestones of asset tokenization undertaken on the Avalanche blockchain in the past.
For example, in September 2023, KKR, one of the biggest investment management firms in the U.S., tokenized its stake in a Dutch data center company on Avalanche’s blockchain through digital assets securities firm Securitize.
“Our mission is to tokenize the world’s assets,” John Wu, president of Ava Labs, the firm that created Avalanche, said in a press release. “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.”
Advancing On-Chain Finance
The Avalanche Vista initiative also aims to advance on-chain finance (“OnFi”), which refers to the use of blockchain technology to facilitate financial transactions and services.
OnFi can provide operational efficiency, accessibility, and improved liquidity for asset issuers and investors.
According to a recent report by Digital Asset Research, the most common tokenized asset types are equities and real estate. The report also predicts that the tokenized securities market will grow to $20 trillion by 2030.
The Avalanche Foundation considers its blockchain platform uniquely equipped to power tokenization and OnFi systems.
Avalanche is a scalable, interoperable, decentralized platform supporting smart contracts and decentralized applications. It claims to offer high throughput, low latency, and low transaction fees.
“Avalanche Vista is an opportunity for us to showcase how our unique technology can make the financial system more accessible, efficient, and cost-effective,”
John Wu, President of Ava Labs.
