The program, known as “Avalanche Vista,” will take tokenization-eligible assets into account when making investments.
On July 25, the Avalanche Foundation unveiled “Avalanche Vista,” a $50 million project to promote tokenization on the Avalanche network.
The launch of Avalanche Vista coincides with a widespread blockchain community trend toward tokenization. In essence, tokenization makes it possible for anyone to turn an off-chain asset into a digital, on-chain token.
Real estate is one of the most well-liked early use cases for tokenization. Large investors or investment corporations usually purchase investment properties. When real estate is valued highly, it is typically challenging for small investors to enter the market.
In addition to facilitating digital asset transactions like the purchase and sale of real estate, tokenization also makes asset allocation more democratic. By purchasing and selling digital tokens, several investors can pool their money to buy a single asset, unlike in traditional asset markets. Smaller investors are now able to participate in a market that would otherwise be out of reach for them.
The Avalanche Foundation sees a broad range of use cases for tokenization on its blockchain, outside of real estate and collectibles. These include venture capital, debt instruments, intellectual property, and portfolio diversification, according to a blog post.
The Avalanche Vista fund, according to the announcement, would be used to buy a range of tokenized assets on the Avalanche blockchain:
“Avalanche Vista will take into account assets with a wide range of liquidity, including those that are blockchain-native, stock, credit, real estate, and commodities.”
The tokenization market has lately been referred to be the next “killer use case” in cryptocurrency, according to financial services company and investment bank Citi.
By 2030, the industry is expected to have a $4 trillion to $5 trillion worldwide market cap, according to the company. Comparatively, the tokenization market was estimated to be worth $2.3 billion in 2021.