Citi Bank is preparing a proof of concept for tokenized funds based on Avalanche
One of the largest US banking conglomerates, Citigroup, has joined forces with Ava Labs to develop a proof of concept for tokenization of private securities funds.
Currently, there are quite serious problems of both a technical and legal nature, but the tokenization of private securities funds can "completely turn around" the entire field of activity of such funds, bankers from Citi hope. Within the framework of the project, work processes were modeled in a private equity fund owned by Wellington Management. ABN AMRO acted as an investor, and Wisdomtree modeled a platform based on Avalanche Evergreen Spruce.
Citi used smart contracts on the Avalanche network to prescribe rules for the distribution of tokens and investments in the emulated fund. Various methods were used to verify the identity of investors and fund participants. It is the tokenization of assets and private investment funds that can become an "ideal use case" for cryptocurrencies and blockchain, according to the bank's specialists.
Now developers, financiers and lawyers need to work out technical issues, including the creation of end―to-end data transmission channels, maintenance processes - in order to facilitate so-called atomic calculations.
