The possibilities of Crypto are endless. However, we still seem to be a long way from general acceptance and practical solutions. The American foreign bank Citibank is at least taking a step in the right direction with a lawsuit be carried out on Avalanche’s Spruce subnet (AVAX).
The Spruce subnet is focused on supporting large financial institutions that want to serve the public Blockchain Infrastructure for your operational needs. This includes processes such as tokenizing assets and optimizing the efficiency of executing and settling trade transactions.
Citibank test conceptual proof
The process carried out by Citibank included a conceptual proof (PoC), where the tokenization of private equity funds on the subnet was examined. This test includes End to end Token transfers, secondary transfers to enable trading and validation of new features through collateralized lending.
The aim was to show how Smart contracts can enable greater automation while improving regulatory compliance and controls for investors and issuers. New business models and efficiency improvements for the broader market are examined.
Citibank’s pilot followed other traditional finance (TradFi) companies such as WisdomTree, Wellington Management and Cumberland. These companies joined the subnet in April last year.
The Avalanche network used by Citibank is currently being updated
The Avalanche blockchain has successfully created this Durango upgrade undergo. This enables direct communication with ether‘s (ETH) smart contractLayer possible, the Ethereum Virtual Machine (EVM).
This step was completed last Tuesday at 5:00 p.m. Dutch time. It uses the Avalanche Warp Messaging (AWM) protocol and allows developers on both platforms to integrate their smart contracts.
Although Avalanche’s stock price has risen significantly, the upgrade is seen primarily as a technological advance that paves the way for greater interoperability between blockchains. For those interested, there will be a detailed presentation about the upgrade on Wednesday.