Avalanche Foundation creates $50 million incentive program to purchase tokenized assets

The Avalanche Foundation will use up to $50 million to purchase assets tokenized on the Avalanche blockchain in a move meant to showcase the utility of creating on-chain digital representations of "real world" things.

Dubbed "Avalanche Vista," the program will consider assets across the full liquidity spectrum including equity, credit, real estate and commodities.

"Asset tokenization isn’t just the future of capital markets, it’s a critical driver of the present,” Ava Labs president John Wu said in a statement. “The groundswell of momentum across institutions building on-chain has been astounding, and the Avalanche Foundations is taking a big leap forward with this initiative.”

The initiative follows recent milestones in the field, including Securitize's tokenization of an interest in a flagship KKR fund, the Avalanche Foundation said, also pointing to the launch of a marketplace for asset-based securities called IntainMARKETS.  

Propelling the Avalanche ecosystem

"The $50 million allocation reflects the Avalanche Foundation’s commitment to driving forward a financial system that’s more accessible, efficient and cost-effective through the use of Avalanche’s novel consensus mechanism, unique Subnet architecture, and technical innovation," the foundation said.

"It intends to accelerate the growth of tokenization and its role in on-chain finances by demonstrating the merits of applying blockchain rails to historically more manual and operationally intensive use cases, including asset issuance, settlement, transfer and administration," it added.

Avalanche Vista is not the first fund designed to propel the blockchain's ecosystem forward. In 2021, a $180 million DeFi investment program was launched alongside Aave and Curve to draw in more asset and decentralized applications onto the Avalanche blockchain.