Institutional investors will execute AVAX tokenized loans on the chain

Institutional investors authenticate loans on the Avalanche blockchain and send them to counterparties.

According to a March 5 announcement, venture capitalist Electric has lent a subprime loan to AVAX (AVAX), a proprietary trading company with more than $1 billion in assets, with 4x leverage. The loan was arranged by Trident Digital Group and Membrane Labs. Electric wrote:

Triden is on board with Cumberland OTC Desk and Wintermuth to facilitate liquidity if necessary. Loan underwriting and management was handled by Membrane Labs' loan management system, and Trident delivered the first risk and liquidity management effort in the lender's space.

“For our product to work, we need the regulations to be commercial, the partners to be real, and the brand to be desirable,” said Anthony DeMartino, co-founder and CEO of Trident. “While BTC and ETH are relatively available, our pipeline focuses on altcoins lending.”

Meanwhile, John Wu, president of Avalanche developer Ava Labs, said there is “smaller investor appetite” for unsecured loans or leveraged loans since Genesis Trading collapses in 2022. However, Wu believes that the development of new equipment will help in rehabilitation. Institutional Investors to Real-World Asset Tokens. Before the FTX crash, the crypto loan peaked at $80 billion.

The Avalanche ecosystem is expanding into other areas as well. In the year On January 16, Cointelegraph reported that Avalanche is embracing the memecoin culture with a $100 million investment fund dedicated to such ventures and investing in imperishable tokens. “Those outside of the Avalanche may not realize it, but the Avalanche has been putting a lot of time, effort and money into culture over the past couple of years,” Papps, Avalanche Project Husky Avax, said in an interview.

Related: Avalanche Foundation to start buying memecoins for ‘culture'