On July 25, Avalanche Foundation unveiled “Avalanche Vista”. The ambitious $50 million initiative aims to catalyze tokenization on the Avalanche blockchain.
The firm has prior experience in the asset tokenization realm. Back in September, KKR, an American investment management company, employed the services of the digital assets securities firm Securitize to tokenize a portion of its private equity fund on Avalanche’s blockchain.
Tokenization involves transforming a real-world asset (RWA) into a digital representation on a blockchain. This enables companies to issue assets and individuals to own them. Furthermore, tokenization facilitates the transfer of value more quickly and efficiently.
Tokenization has become widely used in the real estate sector, particularly in its early stages. Large investors or investment corporations typically dominate investment property purchases. Small investors often face challenges when entering the market, especially when valuable real estate is involved.
Citi, a renowned investment bank, recently labelled the tokenization market as the upcoming “killer use case” in the crypto industry. The company foresees that the sector’s global market cap will reach $4 trillion to $5 trillion by 2030. In contrast, the tokenization market purportedly held a value of around $2.3 billion in 2021.
What is Avalanche Vista?
The announcement states that Avalanche Vista fund will be used to acquire diverse tokenized assets on the Avalanche blockchain. The fund will explore assets across the entire liquidity spectrum, encompassing equity, credit, real estate, commodities, and blockchain-native assets.
John Wu, the president of Ava Labs which is the firm that created Avalanche, stated about this new development:
“Our mission is to tokenize the world’s assets. Vista is our next show of commitment to do that. It’s not just dollars involved, but the commitment to help web2 players work with us and explain tokenization.”
Wu emphasizes that tokenization can deliver various benefits. It can enhance operational efficiency, enable easy access for new users, and advance liquidity.
Wu also stated that they are working on a “long pipeline of deals” with partners to address tokenization liquidity in the coming 12 to 18 months. According to Wu, this is the opportune moment to adopt tokenization.