Avalanche Blockchain Used by Citi to Explore Tokenization of Private Funds
Citi, a global bank, has collaborated with Wellington Management and WisdomTree to conduct a proof-of-concept trial using the Avalanche blockchain. The goal of the trial was to explore the tokenization of private funds and assess the potential for “smart-contract capabilities” to deliver new functionality and operational efficiencies.
Private markets currently rely on a complex and manual infrastructure, and Avalanche’s technology, particularly smart contracts, offers a solution for faster and more efficient asset movement. By testing the tokenization of private assets, Citi aims to open up new operating models and create efficiencies for the broader market.
Avalanche: A Fast and Cost-Effective Ethereum Competitor
Avalanche is a blockchain platform that competes with Ethereum by providing developers with a fast and cost-effective network for building applications. Compared to Ethereum, which can be slow and costly, Avalanche promises a cheap and rapid blockchain solution.
Last November, J.P. Morgan announced its use of the Avalanche blockchain to tokenize portfolios for streamlined portfolio management.
AVAX Price Surge
The price of AVAX, the cryptocurrency associated with the Avalanche blockchain, has experienced a 6% increase in the past 24 hours, reaching $41.34 according to CoinGecko.
Hot Take: Avalanche’s Growing Influence in Traditional Finance
Avalanche continues to make strides in bridging the gap between traditional finance and blockchain technology. With Citi’s collaboration to explore tokenization of private funds using Avalanche’s smart-contract capabilities, it becomes evident that this blockchain platform offers viable solutions for improving operational efficiencies in the global financial market. As more major players like J.P. Morgan join forces with Avalanche, we can expect to see further integration of blockchain technology in traditional financial systems.
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