AvaCloud helps Citi test a unique application

AvaCloud, an entity affiliated with Ava Labs, granted Citi the privilege of evaluating a pioneering application they had developed. Using a blockchain framework, this application calculates and executes simulated bilateral spot foreign exchange (FX) transactions. 

AvaCloud is a customized, controlled blockchain solution that offers permissioned private Avalanche blockchains. In addition to monitoring real-time streaming pertaining to price quotes, Citi’s on-chain service documents parallel transaction implementations on Avalanche. The entity supports the implementation of cryptographically secure record-keeping for trade-related data.

The application is a critical component of Project Guardian, a collaborative effort between the financial industries and the Monetary Authority of Singapore (MAS). The underlying solution enables trading on any currency pair by utilizing the request for streaming (RFS) application, which was assessed for its emulation of spot FX on the USD and SGD cross.

Private and permissioned Avalanche Evergreen Subnets were utilized during the ongoing phase to gather price quotes and simulate trade confirmations that were specifically designed for each counterparty.

The Avalanche Evergreens are, in essence, blockchains that have been explicitly developed for institutional use and in accordance with industry-wide and company-specific specifications. EVM adaptability, permissioned authentication, and smart contract deployment go hand in hand with the built-in and supplementary customizable functionalities. In addition, transaction levels, network privacy, and customized gas features are included. Evergreen Subnets leverage public network development, innovation, and traditional integrations to offer blockchain-standard functionalities.

In a broader sense, tokenization, smart contracts, and blockchain technology are increasingly regarded as methods for enhancing traditional capital markets infrastructure and institutional operations. Currently, Spruce—an Evergreen Subnet that allows institutions to test the potential of on-chain finance—is seeing active participation from organizations such as WisdomTree and other Wall Street firms.

The Evergreens designated for implementation in Citi’s Project Guardian initiative uses the standard intranetwork interoperability provided by Avalanche. Avalanche Warp Messaging (AWM) is increasingly recognized as an essential component that enables interoperability without the need for intermediary bridges or trust requirements.

As stated by John Wu, the President of Ava Labs, the organization is delighted to observe the increasing prominence of Avalanche as a platform for developing innovative solutions that cater to the foreign exchange industry and other capital markets. In his opinion, Avalanche is an appropriate choice for developing on-chain applications that fulfill the needs of institutions. 

Ava Labs simplifies the process of providing high-level services to Web3 and is built on Avalanche. The company was set up by Cornell computer experts who formed associations with Wall Street prime players. 

On the other hand, Avalanche is a smart contract platform that helps upgrade and finalize transactions in the blink of an eye. Its unique consensus protocol, Subnet framework, and HyperSDK give Web3 developers the option of conveniently introducing customized blockchain services.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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