Avalanche blockchain showed some notable surges in tokenization in Q4 alongside rising crypto transactions, adding waves to the increasing blockchain adoption. The total value locked (TVL) of tokenized products on Avalanche has reached nearly $1.3 billion.
This significant surge comes from different tokenized assets leveraging the Avalanche’s blockchain technology. Specifically, BlackRock USD Institutional Digital Liquidity Fund (BUIDL), Janus Henderson’s CLO Fund, Fortune 500 FIS, and other firms have contributed to the $1.3 billion tokenization growth on the blockchain.
Among this, BlackRock’s BUIDL contributed $500 million to the blockchain network, stated Messari, a crypto market intelligence provider.
Over the past two years, the blockchain industry faced an exponential surge in the tokenization niche. According to a January 20 post by on-chain data analytics platform Token Terminal, the combined market cap of tokenized funds and stablecoins has marked a 70% growth since January 2024.
Avalanche plays the BUILD Game
If you check the X account for Avalanche, you can see the header image reading: ‘BUILD Games,’ meaning the blockchain platform is building a next generation of business, welcoming big ideas to turn into real products in weeks.
However, amid the tokenization game, Avalanche also processed $1 billion in crypto transactions on its C-chain (Contract Chain). In detail, the transaction included the number of token transfers, swaps, smart contract interactions, cross-chain transactions, and other related activities.
C-chain is one of the three key chains that support the Avalanche blockchain with decentralized apps (dApps) and smart contracts.
In brief, Avalanche now holds double achievements: one for the high on-chain operations, and the other for the surge in total value locked.
Real-world assets flow into blockchain
Real-world assets or RWAs, which can be physically touched, are the assets that are being increasingly tokenized on blockchains. On Avalanche, money market funds (MMFs), treasury funds, hedge funds, stablecoins, and yield products are mostly tokenized.
Money market funds are low-risk, traditional cash-like funds, and BlackRock’s BUIDL mostly tokenized its MMFs on different blockchains like Ethereum and Avalanche. Ethereum has the most tokenized MMFs from BlackRock.
Tokenization to rewrite finance: Coinbase CEO
During a panel discussion at DealBook Summit at The New York Times, Brian Armstrong, co-founder and CEO of Coinbase, noted that “tokenization is going to reinvent finance.” He focuses on the core advantages of tokenizations like real-time settlement, improved accessibility and liquidity, plus fewer middlemen since it happens on the blockchain.
