Citi Bank is considering tokenizing its private equity funds on Avalanche's (AVAX) Tier 1 Spruce subnetwork to change the architecture of the capital markets.
According to a press release, Citi has partnered with traditional finance giants WisdomTree and Wellington Management to conduct a pilot test on Avalanche's Spruce network. Spruce is an Evergreen sub-network designed for large financial institutions looking to leverage public #blockchain infrastructure.
Citi's participation in this subnet is the latest attempt by Wall Street giants to delve deeper into the use of blockchain. T. TradFi companies such as Rowe Price and WisdomTree Rowe Price, WisdomTree and Wellington Management, TradFi companies such as Cumberland joined the subnet last April to make trade execution and settlement more efficient.
Citi's new endeavors include end-to-end #tokenization, secondary transfers to secure transactions, and proof of new capabilities with collateralized financing.
According to the press release, the bank's proof of concept demonstrated that #smart contracts enable greater automation and have the potential to improve compliance and controls for investors and issuers.
Nisha Surendran, head of new solutions at Citi #Digital Assets, said, "We believe that by testing the tokenization of private assets, we are exploring the potential to create new operating models and efficiencies for the broader market.
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