Citibank tests private equity fund tokenization with Avalanche | CoinDesk JAPAN

Citibank uses Avalanche's Layer 1 blockchain subnet Spruce to pilot tokenization of private equity funds aimed at reshaping capital markets. Ta.

According to a press release, Citi collaborated with traditional finance (TradFi) giants WisdomTree and Wellington Management to conduct a proof-of-concept test published on Avalanche's Spruce. Spruce is an Evergreen subnet designed for large financial institutions looking to use public blockchain infrastructure.

Citi joins several Wall Street giants looking to further explore use cases for blockchain adoption. Traditional finance (TradFi) companies such as T. Rowe Price, WisdomTree, Wellington Management, and Cumberland launched four I joined the subnet in May.

Morgan Krupetsky, senior director of business development, institutions and capital markets at Ava Labs, told CoinDesk that “major financial services companies such as Citi, Wellington, WisdomTree, and DTCC Digital Assets… Avalanche continues to solidify its position as the leader in institutional blockchain with increasing usage of Avalanche.”

Citi's testing included validating new features through end-to-end token transfers, secondary transfers to enable transactions, and collateralized financing.

According to a press release, Citi's proof of concept demonstrated the extent to which smart contracts can increase automation and potentially improve compliance and control for investors and issuers.

Nisha Surendran, head of emerging solutions at Citi Digital Assets, said: “Testing the tokenization of private assets will open up new operating models and enable broader “I think we will be exploring the feasibility of creating efficiencies in the market.”

｜Translation and editing: Rinan Hayashi
｜Image: TungCheung/Shutterstock
｜Original text: Citibank Tests Tokenization of Private Equity Funds on Avalanche