As the number of cryptocurrency networks has increased, competition has also expanded, making it difficult for players like Avalanche to get ahead. Although Solana and Ethereum are in the leading position for now, the Avalanche team aims to return to their days in 2021 by making a breakthrough especially in the RWA field. Today’s agreement is very important.
Avalanche and Galaxy Digital
In the official announcement made recently, “RWANew good news focused on ” (Real World Assets) was given. Galaxy Digital The firm tokenized a complex package of debt (CLOs) through the Avalanche network that normally only large banks and funds buy and sell among themselves.
CLO (Collateralized Loan Obligation) is the pooling and packaging of loans received by large companies from banks. Investors who purchase this package receive a share of the loan interest paid by the companies. Tokenizing this debt package means making the token version available on the blockchain. CLO trading in traditional markets was inaccessible due to lengthy paperwork and complexity. However, the tokenized version increases liquidity with instant transaction ease and makes it possible for everyone to access these products.
“The CLO’s debt tranches are issued and tokenized on Avalanche, enabling low-cost, seamless trading. The tokens are listed on the INX platform and offer market access to qualified investors. Thanks to onchain execution, the structure brings private loans to onchain and offers instant settlement, full structural transparency, improved secondary market liquidity, and the potential for greater collateral efficiency.” – Avalanche Announcement
With an initial issuance of $75 million, Galaxy’s tokenized CLO is backed by Grove’s $50 million allocation.
“Earlier this year, Grove selected Avalanche as the core partner platform for its corporate credit roadmap, citing the need for predictable clearing, low fees, and performance features suitable for programmatic capital transactions.” – Avalanche Announcement
AVAX Price Forecast
It has been declining for 101 days since its peak on September 22. AVAX It finally started to recover from the bottom in the new year. many pioneers altcoin On the contrary, although there is a weak recovery, the rally is expected to accelerate with the break of $ 14.8. If BTC allows, it is possible to take back $ 18.5 and return to $ 22 levels with closings above resistance.
It is a very important detail that the Avalanche team is striving to have a greater presence in the RWA space as corporate interest continues to increase this year. If this issue is kept alive in Avalanche with new agreements, the rise may gain momentum as major financial institutions show interest in blockchain as an alternative to Ethereum and Solana.
