Citibank Utilizes Avalanche Subnet for Tokenization Research in Private Equity Funds

According to a report by CoinDesk, Citigroup announced on Wednesday (14th) that it has partnered with traditional financial giants WisdomTree and Wellington Management to complete the concept verification of tokenizing private equity funds on the Spruce subnetwork of Layer 1 blockchain Avalanche.

This new experiment includes testing end-to-end token transfers, secondary transfers for transactions, and verification of new features through mortgage loans. Citigroup stated that although the private market is a $10 trillion asset class, its infrastructure is complex and relies on manual operations, lacks standardization and transparency, and has low allocation and operational efficiency. The legal and regulatory restrictions associated with private assets are often very complex. The concept verification conducted on the Spruce subnetwork found that smart contract functionality can provide new features and operational efficiency that traditional assets currently do not have.

Spruce Subnetwork
Spruce is an Evergreen subnetwork of Avalanche designed specifically for large financial institutions seeking to adopt public blockchain infrastructure. In April of last year, traditional financial companies such as T. Rowe Price, WisdomTree, Wellington Management, and Cumberland joined Spruce with the aim of improving transaction execution and settlement efficiency.

Morgan Krupetsky, Senior Director of Institutional and Capital Markets Business Development at Ava Labs, the development team of Avalanche, stated in an interview with CoinDesk:

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