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 toward 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.
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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 company equity, venture capital, debt instruments, intellectual property and portfolio diversification.
According to the announcement, the Avalanche Vista fund will be used to various tokenized assets on the Avalanche blockchain:
As Cointelegraph recently reported, financial services firm and investment bank Citi recently described the tokenization market as .
The company also predicts the sector will reach a global market cap of $4 trillion to $5 trillion by 2030. In comparison, the tokenization market was reportedly approximately $2.3 billion in 2021.
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