Avalanche Tokenization Initiative

• The Avalanche Foundation has announced its decision to allocate up to $50 million for purchasing tokenized assets minted on its network.
• The new program, known as Avalanche Vista, aims to bring new digital versions of traditional investment products to the platform.
• Tokenization is the process of converting real-world assets or rights into digital tokens through the use of smart contracts.
• The tech is believed to offer a slate of advantages, including increased liquidity, fractional ownership, reduced transaction costs, enhanced transparency, and accessibility to a global market of investors.

Avalanche Vista

The Avalanche Foundation has announced its decision to allocate up to $50 million for purchasing tokenized assets minted on its network. The new program, known as Avalanche Vista, aims to bring new digital versions of traditional investment products to the platform. Tokenization expands to reach new use cases.

What is Tokenization? 

Tokenization is the process of converting real-world assets or rights into digital tokens through the use of smart contracts. These tokens represent ownership or entitlements to the underlying asset and can be transacted and managed directly on the blockchain. The tech is believed to offer a slate of advantages, including increased liquidity, fractional ownership, reduced transaction costs, enhanced transparency, and accessibility to a global market of investors.

Benefits of Tokenization

Tokenization can provide a number of different benefits. Some popular examples of tokenized assets include corporate stock, commodities, and other physical goods. However, tokenization can also extend to ideas, information, and services—think insurance, sports collectibles, real estate or identity records, and so on. Additionally, the Avalanche Foundation will consider blockchain-native assets—those that are made buyable as an asset class or can be securitized because they are issued on-chain. These will include certain environmental, social, and governance (ESG), or emerging markets-related credit products, creator IP, music royalties, film slates, and more.

Avalanche’s On-Chain Ambitions

Within the new program, the Avalanche Foundation will essentially act as an “investor,” and will consider many assets from a purchase perspective but mostly financial such as equities, credit and real estate. “The program will seek to hone in on protocols across asset classes that have a clear value proposition, comprehensive go-to-market strategy and thoughtful view on product-market fit,” said Morgan Krupetsky. These tokenized assets can be issued, traded, and managed on the blockchain all while parties can easily track their performance in real-time.