On July 25, the Avalanche Foundation unveiled their planned $50 million “Avalanche Vista” fund, built to invest in tokenized assets and decentralize investing. With the use of blockchain-driven smart contracts, tokenized assets represent digitalized versions of real-world assets — including equity, credit, commodities and real estate—and promise improved accessibility, cost-effectiveness and efficiency for investors. Benefits include liquidity, shorter lock-up periods and the ability to make more informed investor decisions due to the increased transparency of the blockchain. Institutional giants, such as BlackRock, have already vocalized their embrace of tokenized off-chain assets, and recent studies are estimating tokenization of around $25billion by 2023. VanEck’s Asset Manager has even released research explaining the projected digital asset securities sphere. Tokenized blockchain-native assets can also be utilized, verified and merged into bigger investments. KKR proved this is possible last year when they successfully tokenized a fund on the Avalanche blockchain. Large-scale tokenization stands to push boundaries in the realms of purchase potential and the transparency of investments globally. Avalanche Vista is likely to do just that.
