Onyx Digital asset leveraged a variety of interoperability protocols to tap into assets tokenized on blockchain beyond its platform built on Consensys Quorum.
LayerZero connected Onyx Digital Assets with a permissioned Avalanche Evergreen Subnet, which facilitated subscriptions and redemptions for funds offered by WisdomTree, a leading asset manager and pioneer in fund tokenization.
Avalanche Evergreen Subnets are institutional blockchains. They offer a range of features including EVM compatibility, permissioning, smart contract deployment, transaction levels, network privacy, and custom gas.
Financial services leaders are embracing blockchain, smart contracts, and tokenization to enhance legacy capital markets infrastructure and institutional workflows. WisdomTree and other Wall Street firms are participating in Spruce, an Evergreen Subnet, to test on-chain finance.
According to the PoC participants, the initiative yielded several learnings that validated key benefits:
Inclusion of alts in discretionary portfolios: Tokenized funds can standardize and automate the funding, order execution, and settlement processes for both traditional asset classes and alts.
Efficiency and scalability: The PoC demonstrated that multiple portfolios can be linked to representative models and automatically rebalanced through smart contracts.
Broadening the investable universe with ledger interoperability: Interoperability protocols enabled wealth managers to access funds tokenized on various blockchain platforms without having to move the underlying assets from their base ledger of record.
Improving the blockchain user experience: Novel Account Abstraction concepts, such as Biconomy’s Paymaster service, abstracted the complexities of interacting with blockchains, including the need to pay for blockchain transaction fees. Interoperability solutions abstracted the complexities of accessing assets across disparate blockchains and managing blockchain private keys.
About Avalanche
Avalanche is a smart contracts platform that scales infinitely and regularly finalizes transactions in less than one second.