Citibank tests private equity fund tokenization on Avalanche subnet testnet Spruce

Citibank partnered with traditional finance giants WisdomTree and Wellington Management to conduct a proof-of-concept trial on Avalanche’s Spruce. Spruce is an Evergreen subnet designed for large financial institutions that want to use public blockchain infrastructure. Citi’s new tests include end-to-end token transfers, secondary transfers to enable transactions, and new capabilities through mortgage verification. According to a press release, the bank’s proof-of-concept demonstrates how smart contracts can enable greater automation and potentially create better compliance and control for investors and issuers. Nisha Surendran, Citi’s head of digital asset emerging solutions, said: “We believe that by testing the tokenization of private assets, we are exploring the feasibility of opening up new operating models and creating efficiencies for the broader market.” (CoinDesk)