Xalts partners with Avalanche to drive RWA tokenization

Xalts has announced a new collaboration with Avalanche aimed at assisting financial institutions in deploying custom blockchain networks that meet specific financial requirements and comply with local regulations. The initiative will leverage Avalanche's Layer 1 (L1) technology and Xalts' RWA Cloud platform to orchestrate and automate on-chain processes and tokenize digital assets and liabilities via smart workflows.

The collaboration aims to offer a plug-and-play solution for enterprise institutions that seek to launch real world asset (RWA) tokenization and build blockchain-based technology applications on Avalanche. Among the recent collaboration efforts, Avalanche and Xalts have partnered with Misyon Bank to launch the Misyon Tokenization Platform in Turkey.

Xalts has outlined the primary objectives of this collaboration, which includes bringing more enterprise-grade RWA tokenization solutions for institutions. The goal is to provide out-of-the-box solutions for financial services, governments, and enterprise developers looking to implement blockchain, tokenization, and smart contract applications. These applications span various use cases, including the tokenization of funds, securities, commodities, trade finance assets, digital currencies, and central bank digital currencies (CBDCs).

Xalts utilises a modern technology stack, including APIs, blockchains, and orchestration layers, to facilitate connectivity for financial services and businesses. Its product suite includes the RWA Cloud platform, which is designed to assist large institutions such as financial services firms and governments in building complex blockchain solutions quickly. RWA Cloud addresses challenges such as the retention of complex rules, workflows, processes, and user compliances mandated by internal or regulatory governance.

By using RWA Cloud, enterprises can manage the complexity associated with events like issuance, servicing, or transfers. The platform's Smart Workflow Core, an orchestration layer, connects with smart contract libraries and multiple off-chain systems. This allows enterprises to orchestrate and automate on-chain processes effectively.

Morgan Krupetsky, Head of Institutions & Capital Markets at Ava Labs, commented, "Our collaboration with Xalts enables us to jointly offer RWA tokenization technology infrastructure and solutions to financial services institutions, including banks, asset managers, and fintechs alike."

Xalts has recently joined the Qatar Financial Centre (QFC) Authority Digital Assets Lab to test and commercialise use cases in real world asset tokenization. This collaboration comes as global regulators are launching tokenization use cases. The Hong Kong Monetary Authority (HKMA) initiated Project Ensemble, a wholesale central bank digital currency (wCBDC) pilot to create an interoperable platform, in March 2024. Similarly, the Monetary Authority of Singapore (MAS) launched Project Guardian, a multi-year initiative for asset tokenization, and the Qatar Financial Centre introduced the QFC Digital Assets Framework.

Ashutosh Goel, Chief Executive Officer of Xalts, said, "We are very excited to partner with Avalanche. This will make the development of blockchain and smart contract solutions much more accessible and accelerate enterprise use cases."

Devika Mittal, Regional Head at Ava Labs, shared her enthusiasm, stating, "We have an exciting roadmap ahead of us with Xalts as we jointly enable financial institutions across markets in their RWA tokenization journey!"