Avalanche Launches $50 Million Real World Asset Tokenization Initiative

On July 25, Avalanche stated that it was on a mission to “pioneer the future of asset tokenization.”

Tokenization is poised to be one of the most impactful blockchain innovations of the next decade, it stated.

Today, the Avalanche Foundation introduces Avalanche Vista, a $50M initiative to pioneer tokenization on #Avalanche

Tokenization is poised to be one of the most impactful blockchain innovations of the next decade, and Avalanche is uniquely equipped to power these systems. pic.twitter.com/ZWy109CMCi

— Avalanche 🔺 (@avax) July 25, 2023

Tokenized RWA on Avalanche

Around $50 million will be allocated to mint tokenized real-world assets on the scalable layer-1 blockchain network.

Avalanche Vista intends to accelerate the growth of tokenization and its role in on-chain finance (OnFi), it stated. Several assets will be considered for tokenization, including equity, credit, real estate, commodities, and blockchain-native assets.

John Wu, President of Ava Labs, commented that asset tokenization isn’t just the future of capital markets, “it’s a critical driver of the present,” adding:

“The groundswell of momentum across institutions building on-chain has been astounding, and the Avalanche Foundation is taking a big leap forward with this initiative.”

According to a report by Security Token Advisors, the tokenized securities market is expected to grow to $20 trillion by the end of 2030.

Furthermore, the value of tokenized U.S. Treasuries has reached an all-time high of $641 million, according to RWA.xyz. Treasury tokenization has grown by more than 460% since the beginning of the year.

In June, private wealth management firm Bernstein estimated that roughly 2% of the global money supply, or around $3 trillion, could be tokenized over the next five years.

Ethereum advocate Ryan Berckmans stated that RWA tokenization will also be huge for the Ethereum ecosystem since it is the industry standard:

“As tokenized real world assets grow to global ubiquity, we may expect Ethereum and our L2s to capture the vast majority of this growth. Not just because we’re a great place to tokenize, but also because we’re the best marketplace in the world.”

In May, Alibaba Cloud announced a launchpad to deploy its metaverse on the Avalanche network.

AVAX Price Outlook

Avalanche token prices are trading flat on the day at $13.18, having shown no reaction to the latest announcement.

Furthermore, the asset has lost 6% over the past week, in line with the broader crypto market retreat.

AVAX has been down-trending for the past year and remains 91% down from its November 2021 peak price of $145.