The Avalanche Foundation announced the launch of “Avalanche Vista,” a $50 million initiative to support tokenization on the Avalanche blockchain, on July 25.

Avalanche Vista comes amid the tokenization trend within the blockchain community. Essentially, tokenization allows anyone to convert off-chain assets into an on-chain digital token.

One of the most popular early use cases for tokenization is in the real estate sector. Investment property purchases are usually the domain of large investors or investment companies. When a property is considered valuable, it is usually difficult for small investors to address the market.

Related: A New Age in Investing: The Transformative Power of Asset Tokenization

Tokenization not only facilitates digital asset transactions such as buying and selling real estate, but also facilitates the democratization of asset allocation. Unlike traditional asset markets, buying and selling digital tokens allows multiple investors to pool funds in the purchase of a single asset. This allows smaller investors to enter a market that could otherwise be prohibitively expensive.

Beyond real estate and collectibles, the Avalanche Foundation envisions a wide variety of use cases for tokenization on its blockchain. According to the blog post, these include corporate equity, venture capital, debt instruments, intellectual property and portfolio diversification.

According to the announcement, the Avalanche Vista fund will be accustomed purchase various tokenized assets on the Avalanche blockchain:

“Avalanche Vista will consider assets across the spectrum of liquidity, including equities, credit, real estate, commodities, as well as those native to the blockchain.”

As recently reported by Cointelegraph, financial services company and investment bank Citi recently described the tokenization market as another “killer use case” in cryptocurrencies.

The company also predicts that the sector will reach a global market capitalization of $4 trillion to $5 trillion by 2030. In comparison, the tokenization market was reportedly value approximately $2.3 billion in 2021.

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