Avalanche is making significant strides in the tokenization of real-world assets (RWAs) by introducing tokenized equities, starting with Coinbase stock ($bCOIN) and the S&P 500 index ($bCSPX). This development, made possible through a partnership with Backed Finance, allows traders to invest in traditional finance (TradFi) assets directly within the decentralized finance (DeFi) ecosystem, eliminating the need for intermediaries such as brokerages.
The newly tokenized stocks are now available on Avalanche, where they can be traded seamlessly on ParaSwap, a decentralized exchange aggregator. Traders can enjoy competitive rates and low-latency transactions, further enhancing the trading experience.
In addition, Pharaoh Exchange has introduced liquidity provision (LP) rewards, enabling users to earn extra yield by supplying liquidity for bCOIN and bCSPX trading pairs. To expand accessibility, Avalanche has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP), allowing users to swap these tokenized assets across various blockchains. This cross-chain functionality increases liquidity and usability for traders seeking to move assets across different ecosystems.
Avalanche’s affordability, rapid transaction finality, and liquidity position it as an ideal blockchain for bridging traditional financial products with the world of crypto. This integration of on-chain stock trading, liquidity incentives, and cross-chain interoperability is a significant step forward in the evolution of DeFi, offering new investment opportunities by merging blockchain and conventional finance.
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