Avalanche Foundation allocates $50M investment to on-chain asset token purchases

Called "Avalanche Vista," the initiative will consider investing in any asset that can be tokenized.

The Avalanche Foundation announced the launch of “Avalanche Vista,” a $50 million initiative to spur tokenization on the Avalanche blockchain, on July 25.

Avalanche Vista comes amid a groundswell trend towards tokenization throughout the blockchain community. Essentially, tokenization allows anyone to convert an off-chain asset into a digital, on-chain token.

One of the most popular early use cases for tokenization is in the real estate sector. Investment property purchases are typically the domain of large investors or investment corporations. When real estate is considered valuable, it’s usually difficult for small investors to approach the market.

Related: A new age in investing: The transformative power of asset tokenization

Tokenization not only facilitates digital asset transactions such as buying and selling properties, but it also facilitates the democratization of asset allocation. Unlike traditional asset markets, buying and selling digital tokens allows multiple investors to pool funds in the purchasing of a single asset. This makes it possible for smaller investors to enter a market that otherwise might be prohibitively expensive.

Aside from real estate and collectibles, the Avalanche Foundation envisions a wide array of use cases for tokenization on its blockchain. Per a blog post, these include company equity, venture capital, debt instruments, intellectual property, and portfolio diversification.

According to the announcement, the Avalanche Vista fund will be used to purchase various tokenized assets on the Avalanche Blockchain:

“Avalanche Vista will consider assets across the full liquidity spectrum, including equity, credit, real estate, commodities, as well as those that are blockchain-native.”

As Cointelegraph recently reported, financial services and investment bank corporation Citi recently described the tokenization market as the next “killer use case” in crypto.

The company also predicts the sector will reach a global market cap of $4-$5 trillion by 2030. In comparison, the tokenization market was reportedly worth approximately $2.3 billion in 2021.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Comments

Post a Comment

Popular posts from this blog

Ethereum (ETH) price is aiming for $1,800 in February — Here is why

Image
ETH price is finding support at $1,560 and multiple data points are beginning to hint at a possible rally to $1,800 before the end of February. Ether (ETH) has been struggling with the $1,680 resistance since Jan. 20. Still, the ascending triangle pattern and improvements in investor sentiment in ETH derivatives provides hope that Ether price could reach $1,800 or higher by the end of February. This, of course, depends on how the Ether price behaves as it reaches the pattern deadline by mid-February.  Ether/USD price index, 12-hour. Source: TradingView From one side, traders are relieved that Ether is trading up 33% year-to-date, but the repeated failures to break the $1,680 resistance coupled with negative newsflow might give bears the power to cancel the bullish triangle pattern. According to a Jan. 30 report from Axios, New York State's Department of Financial Services is reportedly investigating Cryptocurrency Exchange Gemini over claims that the firm made regarding assets in...
Read more

Venezuela’s oil-backed cryptocurrency Petro to shut down

The Venezuelan government will reportedly shut down Petro (PTR), its state-issued, oil-backed crypto, which was subject to controversy and did not see mass adoption by citizens in the country.  According to reports, crypto wallets on the Patria website, the trading platform for Venezuela’s Petro, will cease operations on Monday, Jan. 15, with the remaining Petro converted to bolivar, the country’s fiat currency .  Petro’s demise comes nearly six years after its official launch in 2018. Venezuelan President Nicolás Maduro said at the time that the crypto will help to circumvent harsh sanctions by the US government and also help the country’s collapsing economy. You might also like: Venezuela authorities seize Bitcoin mining machines from notorious prison However, the state-issued crypto currency which was an ambitious project, failed to see widespread adoption among citizens, with the country’s legislators labeling the token as unconstit...
Read more

Top 3 Memecoins To Watch In June 2024

Image
Table of Contents PawFury (PAW): The Next Big Thing Cardano (ADA): The Smart Contract Innovator Ripple (XRP): The Payment Revolution Conclusion Meme coins are gaining traction, and June 2024 is set to be an exciting month. This article highlights the top three meme coins to watch: PawFury (PAW), Cardano (ADA), and Ripple (XRP). 1. PawFury (PAW): The Next Big Thing PawFury (PAW) is poised to be the next big thing in the meme coin world. With a presale that has already raised over $3 million and a growing Telegram community of over 30,000 members, PawFury is generating massive interest. Currently priced at $0.00844, analysts predict it could surge to $0.0200. This is your chance to get in early on a coin that’s set to explode. Don’t miss out on this golden opportunity – PawFury is the future of meme coins! 2. Cardano (ADA): The Smart Contract Innovator Cardano (ADA) is known for its unique approach to smart contracts and blockch...
Read more