Thomas Cohen

"We were really excited about about that CLO... it demonstrated, you know, what is possible for a market like this, what you can do with a pool of underlying loans when they're on chain." Blockchains that can successfully host complex, institutional-grade structured products like CLOs will attract significant debt issuance and enterprise activity, driving network utility and fee generation. LONG. Avalanche's ability to support transparent, on-chain debt syndication proves its viability for traditional financial institutions looking to upgrade their backend infrastructure. Institutions may prefer private subnets or competing Layer 1s (like Solana or Ethereum) for future structured product issuances.

We were really excited about that CLO... it was through one of our portfolio companies, Arch. And they were Bitcoin, Ethereum, Solano, and XRP-backed loans. Layer 1 blockchains that successfully integrate with SEC-registered transfer agents and institutional issuers to host Real World Assets (RWAs) and structured products (like CLOs) will capture massive TVL from the traditional finance market, driving network fees and token utility. LONG. Solana and Avalanche are establishing themselves as the primary base layers for institutional tokenization, moving beyond retail speculation into multi-million dollar traditional debt and equity markets. Regulatory crackdowns on public blockchains hosting securities, or TradFi institutions opting to build private, permissioned subnets instead of using public mainnets.