55.2 F
London
October 9, 2024
PI Global Investments
Private Equity

Citi Bank Tests Tokenization of Private Equity Funds on Avalanche (AVAX)


Citi Bank used layer 1 Avalanche’s (AVAX) Spruce Subnet to explore the tokenization of private equity funds to re-architect capital markets.

Citi worked with traditional finance giants WisdomTree and Wellington Management to carry out its proof-of-concept trial that was issued on Avalanche’s Spruce, according to a press release. Spruce is an Evergreen subnet designed for large financial institutions looking to use public blockchain infrastructure.

Citi joining the subnet is the latest bet from a Wall Street giant looking to dive further into the use cases of blockchain adoption. TradFi firms such as T. Rowe Price, WisdomTree, Wellington Management and Cumberland joined the subnet in April last year to make trade execution and settlements more efficient.

The new test by Citi included end-to-end token transfers, secondary transfer to enable trading and validating new capabilities through collateralized lending.

The bank’s proof-of-concept demonstrated how smart contracts could enable greater automation and potentially create enhanced compliance and controls for investors and issuers, according to the press release.

“We believe that by testing the tokenization of private assets, we are exploring the feasibility to open-up new operating models and create efficiencies for the broader market,” said Nisha Surendran, emerging solutions lead for Citi Digital Assets.



Source link

Related posts

Labour considers watering down plans for a private equity tax raid

D.William

Demeter Invests in H2 Green Steel

D.William

Private Equity Firms Begin 2024 in Sell Now, Buy Later Mode

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.