Avalanche positions itself as the preferred platform for tokenized assets with its second-level settlement and customizable subnet. Recently, Grove Finance plans to introduce approximately 250 million USD of RWA, showcasing its strong development potential in the institutional financial sector. This article originates from an article by Alea Research, compiled, translated, and authored by Tim, PANews. (Background: Grayscale Q3 Top 20 cryptocurrency list released: New additions AVAX, MORPHO, while LDO and OP were eliminated.) (Background information: FIFA announced a partnership with Avalanche for a "football blockchain," causing AVAX tokens to surge by 12%). Avalanche was initially designed as a high-performance public chain for institutional-grade finance, but its next phase of development will shift focus to the RWA sector. Avalanche does not rely solely on throughput or virtual machine compatibility for competition but positions itself as the preferred platform for tokenized credit, treasury bonds, and other regulated assets. According to recent news, Grove Finance plans to configure approximately 250 million USD of RWA on the Avalanche blockchain through Centrifuge and Janus Henderson, which will bring new institutional partners and financial products to the ecosystem. In this article, we will introduce Avalanche's technical architecture aimed at institutions, Grove's RWA deployment and its impact, and analyze why tokenized credit and treasury bonds can make Avalanche the preferred public chain in the RWA sector. Why is Avalanche important for RWA? The Avalanche platform, with its unique Avalanche consensus protocol, achieves sub-second transaction finality and high throughput, enabling developers to build customizable layer one networks—subnets—that balance compliance and performance. These features make the platform particularly suitable for institutional applications, where determinism in settlement and low transaction fees have become rigid demands. As of now, Avalanche has supported nearly 180 million USD worth of tokenized RWA, covering 35 asset classes. These assets already include some important traditional financial product categories, such as tokenized treasury bonds, credit products, institutional funds, and alternative assets. Tokenized treasury bonds and credit products: OpenTrade connects short-term U.S. treasury bills and institutional credit to DeFi, while Backed Finance introduces regulated stocks like SPY and COIN onto the blockchain under the Swiss regulatory framework. Institutional funds: BlackRock's BUIDL fund is issued through Securitize and can be deposited into Avalanche wallets and used as collateral in DeFi. This fund contributed 53 million USD to institutional RWA TVL. Reinsurance and alternative investments: RE tokenizes reinsurance premiums, creating uncorrelated sources of return. The network of Avalanche supports customizable subnet functions, allowing asset management institutions to deploy dedicated chains equipped with independent validation nodes and compliance rule systems. This ecosystem is compatible with programmable stablecoins (such as avUSD and sAVAX) and supports permissionless lending protocols as well as various liquidity staking solutions (including innovative protocols like sAVAX, ggAVAX, and yyAVAX). Collaboration between Grove, Centrifuge, and Janus Henderson In late July 2025, Avalanche announced that the institutional credit protocol Grove Finance would go live on its platform, aiming to bring in approximately 250 million USD of RWAs. Currently, Grove is collaborating with tokenization pioneer Centrifuge and the asset management giant Janus Henderson, which manages 373 billion USD, to promote the on-chain deployment of two funds: Janus Henderson Anemoy AAA-rated Loan Collateralized Securities Fund (JAAA): A loan collateralized securities fund configured with priority credit assets through regulated standards. Janus Henderson Anemoy Treasury Fund (JTRSY): An investment strategy in short-term U.S. treasury bills. The influx of funds from Grove will more than double Avalanche's scale in the RWA sector. This collaboration will also introduce powerful new partners to the ecosystem, deepening strategic synergies with asset management giant Janus Henderson and decentralized asset protocol Centrifuge. The deployment of products from Apollo Global Management's ACRED, WisdomTree's tokenized fund, KKR's healthcare growth fund, and products from BlackRock, Franklin Templeton, VanEck, etc., all demonstrate Avalanche's overall strong development momentum in institutional application layers. Adoption of RWA on Avalanche For users and developers, the continuously expanding RWA ecosystem on Avalanche provides new foundational components for constructing yield strategies and fixed-income products. Developers can integrate tokenized loan collateral certificates and U.S. treasury bonds into lending markets or automated vault systems, while retail investors gain access to financial domains traditionally limited to institutional participation. For asset allocators, Avalanche is gradually becoming a reliable alternative to Ethereum in the institutional RWA space. Its high-performance architecture, low costs, and validated subnet technology offer significant appeal to asset management institutions seeking to achieve fund tokenization. Grove's deployment plan indicates that large credit portfolios have achieved on-chain operationalization, expected to unlock liquidity for investors and enhance transparency. The network's collaboration with Visa in the global stablecoin settlement space, coupled with record trading volumes on DEX, collectively confirms that Avalanche is building infrastructure for payment systems and capital markets.

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