Intain Markets, FIS Launch Digital Liquidity Gateway on Avalanche for 2,000 US Banks

42 minutes ago by · 2 mins read

Intain Markets and FIS have deployed a blockchain-based loan marketplace on Avalanche, connecting thousands of community banks to institutional liquidity through tokenized assets.

Intain Markets and FIS launched the Digital Liquidity Gateway on Avalanche on Monday, enabling roughly 2,000 regional and community banks across the US to buy, sell, and securitize loan portfolios through a decentralized marketplace, according to Avalanche.

The platform is actively onboarding banks and institutional investors nationwide, with hundreds of millions of dollars in loan transactions expected to flow through by year-end, the blog stated. John Wu, President of Ava Labs, said the gateway bridges community banks to institutional-grade liquidity through blockchain infrastructure.

The marketplace tokenizes individual loans as NFTs and automates settlement processes including transactions with stablecoins like USDC, streamlining workflows that traditionally required manual reconciliation, according to an exclusive interview with CoinDesk. The system prevents double-pledging of assets through blockchain traceability, the outlet reported.

AI-driven workflows reconcile loan data and verify asset details before minting tokens, and early transactions between institutional partners have demonstrated functionality. John Omahen, Head of Digital Assets at FIS, noted the integration with FIS core banking systems in the interview.

Technical Infrastructure

The Digital Liquidity Gateway operates on Intain’s Avalanche Layer 1 blockchain with AvaCloud support, and connects to FIS core banking systems to enable connectivity for the addressable market of community banks.

A Japanese IT firm launched an Avalanche tokenization platform for banks in October using similar AvaCloud infrastructure for deployment and management.

Asset Classes and Market Context

Initial loan pools on the marketplace include commercial real estate and aviation finance assets being traded among institutional participants. The platform aims to provide transparency and traceability for loan transactions, Siddhartha S, CEO of Intain Markets, said.

According to the CEO, the partnership is expected to bring blockchain to the core of asset-backed finance where it’s most needed, all while ensuring transparency in the automation of previously manual processes.

Multiple platforms activated a tokenized fund infrastructure in November, with RWA tokenization momentum across blockchain networks. FIS supports over 20,000 financial institutions globally through its core banking systems.

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