The world’s largest financial institutions are signing partnerships with cryptocurrencies and are already preparing for more. We have seen Chinese banks issue tokenized assets on the Ethereum network. The tokenization of bonds and funds on the blockchain brings many benefits. Moreover, experts are very hopeful about the future of the RWA field.
Avalanche and Citi Bank
According to experts, the tokenization of real-world assets (RWA) will be a trillion-dollar ecosystem in the future. Ripple’s latest network update also aimed to become more compatible with the tokenized asset issuance process. However, the good news came from the Avalanche side.
Citi Bank is using Avalanche’s (AVAX) Spruce subnet to prepare for the blockchain-based future of capital markets. Citi worked with WisdomTree and Wellington Management to carry out a proof of concept trial published on Avalanche’s Spruce. Spruce is a network specifically designed to serve large financial institutions.
Nisha Surendran, the leader of emerging solutions at Citi Digital Assets, said;
“By testing the tokenization of private assets, we believe we are exploring the feasibility of unlocking new business models and creating efficiency for a broader market.”
Many financial giants are already conducting both covert and overt studies on this topic with support from various initiatives.
