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- Citigroup bank conducted a successful proof-of-concept on tokenization of private funds on the Avalanche network aided by Wellington Management and WisdomTree.
- With the heightened adoption of the Avalanche network by institutional investors, AVAX price is well poised to continue on a bullish momentum in the near term.
The Avalanche (AVAX) network has grown to a mature web3 ecosystem that is well supported by institutional investors and DeFi developers. On February 14, the Avalanche network launched the Durango upgrade, which is now scheduled for the Fuji testnet, to introduce Avalanche Warp Messaging (AWM) to the C-chain. The Durango upgrade is meant to introduce new improvements including enabling secure and scalable cross-chain communication.
Citi Bank Taps into Avalanche for Asset Tokenization
On Wednesday, banking behemoth Citigroup Inc. (NYSE: C) announced that it has successfully completed a proof-of-concept on tokenization of private funds on the Avalanche Spruce institutional test subnet. According to the announcement, Citi Bank worked alongside Wellington Management and fund manager WisdomTree to enable the proof-of-concept. The company indicated that the use of smart contracts on the Avalanche network is a breakthrough to ensuring a sustainable future growth prospect.
“Smart contracts and blockchain technology can enable enhanced rule enforcement at an infrastructure level, allowing data and workflows to travel with the asset. We believe that by testing the tokenization of private assets, we are exploring the feasibility of opening up new operating models and creating efficiencies for the broader market,” stated Nisha Surendran, Emerging Solutions Lead for Citi Digital Assets.
The bank indicated that it will continue to develop digital asset solutions, with the Avalanche network as a priority layer one chain. According to Maredith Hannon Sapp, Head of Business Development and Digital Assets at WisdomTree, the future of finance lies in the use of smart contracts. Furthermore, the global private market is estimated to be worth around $10 trillion but still suffers from inefficient distribution due to complex regulatory restrictions, which could be opened up by blockchain technology.
“The Avalanche Spruce test network has proven to be an ample technical sandbox environment for coming together with partners and exploring the potential of blockchain technology within our industry. We look forward to continuing to collaborate with Citi, strong, long-term partners who are providing meaningful developments and thought leadership in the blockchain space,” said Mark Garabedian, the Director of Digital Assets and Tokenization Strategy at Wellington Management.
Market Impact on AVAX Price Action
After a successful correction, Avalanche (AVAX) price is currently on the precipice of a fresh bullish momentum amid the ongoing crypto breakout. The mid-cap altcoin, with a fully diluted valuation of around $18.5 billion and an average daily trading volume of about $949 million, is well bolstered by both retail traders and institutional investors. Furthermore, AVAX price has risen more than 27 percent in the past two weeks, following the notable Bitcoin price breakout above $52k.
According to the weekly Auto Fibonacci Extension, AVAX price will experience the next major resistance between $70 and $100. The altcoin must, however, consistently close above $48 in the coming weeks to ensure a bullish outlook. Already, AVAX price has registered more than 136 percent in the past year amid the ongoing crypto awakening to trade at
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