The Avalanche Foundation allocates $50 million for on-chain token purchases

As a part of the “Avalanche Vista” initiative, all tokenizeable assets will be considered for investment. On July 25, the Avalanche Foundation announced the start of “Avalanche Vista,” a $50 million program to accelerate tokenization on the Avalanche network.

Avalanche Vista joins the blockchain community’s growing trend toward tokenization. Tokenization, in essence, enables anyone to transform an off-chain asset into a digital, on-chain token.

The real estate sector was one of the most prominent early use cases for tokenization. Large investors or investment corporations are often the buyers of investment properties. When real estate is regarded as valuable, small investors typically find it difficult to enter the market.

Tokenization not only simplifies digital asset transactions like buying and selling properties, but it also simplifies asset allocation. Unlike traditional asset markets, buying and selling digital tokens allows several investors to pool their resources to purchase a single asset. This allows smaller investors to enter a market that would otherwise be too expensive.

Tokenization on the Avalanche Foundation’s blockchain is not limited to real estate and collectibles. These include corporate equity, venture capital, debt instruments, intellectual property, and portfolio diversification, according to a blog post.

The Avalanche Vista fund, according to the announcement, will be used to purchase the following tokenized assets on the Avalanche blockchain: “Avalanche Vista will examine assets throughout the whole liquidity spectrum, including stock, credit, real estate, commodities, and blockchain-native assets..” financial services, and investment bank Citi has labeled the tokenization market as the next “killer use case” in cryptocurrency. The business also expects that by 2030, the sector would have a global market size of $4 trillion to $5 trillion. In comparison, the tokenization market is expected to be worth $2.3 billion in 2021.

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