Onyx Leverages Avalanche Evergreen
Onyx Leverages Avalanche Evergreen, Onyx Digital Assets leveraged a variety of interoperability protocols to tap into assets tokenized on blockchains 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.
“This initiative under Project Guardian fundamentally aligns with Ava Labs’ mission to provide the tools and tech to digitize and tokenize the world’s assets while harnessing the speed, scalability, and customizability of Avalanche,” said John Wu, President, Ava Labs. “We are proud to be working with such industry leaders as they help drive forward the future of 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.
- The implementation of smart contracts for payments and investor register updates can streamline the management of investments in alts. As such, it could enable wealth managers to include more alts in client portfolios.
- 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.
“Our work under Project Guardian demonstrates a significant opportunity for the asset and wealth management industry,” said Tyrone Lobban, Head of Onyx Digital Assets. “By leveraging the power of blockchain technology we have shown how the construction and management of discretionary portfolios could be revolutionized.”
About Ava Labs
Ava Labs makes it simple to deploy high-performance solutions for Web3, led by innovations on Avalanche. The company was founded by Cornell computer scientists, who partnered with Wall Street veterans and early Web3 leaders to execute a promising vision for redefining the way people build and use open, permissionless networks. Ava Labs is redefining the way people create value with Web3.
Avalanche is a smart contracts platform that scales infinitely and regularly finalizes transactions in less than one second. Its novel consensus protocol, Subnet infrastructure, and HyperSDK toolkit enable Web3 developers to easily launch powerful, custom blockchain solutions. Build anything you want, any way you want, on the eco-friendly blockchain designed for Web3 devs.