Why is Citigroup starting to experiment with Avalanche?
Citigroup, in partnership with Wellington Management and Wisdomtree, is said to be actively exploring Avalanche as private equity funds.
This initiative reflects a broader trend in the crypto industry, where major banks around the world are moving real-world assets into tokens, sparking significant discussion.
Citigroup Investigates Avalanche Blockchain Network
According to a recent report, Citigroup is currently testing a private equity token on the Avalanche blockchain network.
“Citigroup Inc. private equity fund runs simulation of how to run tokens on blockchain network, paving way for greater use of distributed ledger technology on Wall Street.”
In September 2023, Citi launched a digital asset service. The banking group has partnered with Trade Solutions and Maersk to offer blockchain-based digital services to institutional clients.
Following the January 10th approval by the United States Securities and Exchange Commission (SEC) of 11 bitcoin exchange-traded funds (ETFs), banks are beginning to embrace the legitimacy of blockchain.
Read more: How to buy Avalanche (AVAX) and everything you need to know
In addition, the approval will allow major asset management firms such as BlackRock and Grayscale to offer Bitcoin ETF products to clients.
On January 12, BeenCrypto reported that Algorand CEO Stacy Warden believes tokenization will ensure crypto survives.
Global Tokenized Market Rise
Different types of assets are eligible for tokens, such as real estate, art, precious metals, cars and carbon credits.
Markets and Markets The global tokenization market will reach $5.6 billion by 2026. Currently, the North American market holds the lion's share.
In addition, in September 2023, Australia and New Zealand Banking Group (ANZ), one of Australia's leading banks, recently announced the adoption of the ChainLink Cross-Chain Interoperability Protocol (CCIP).
This token is accepted to simulate asset purchases.
Read more: How to add Avalanche to MetaMask: Step-by-step guide
However, the Hong Kong Securities and Futures Commission (SFC) recently outlined possible requirements for introducing investment products.
“Tokenization of investment products refers to the creation of blockchain-based tokens that represent or represent ownership in an investment product.”
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