Delphi Digital says Avalanche could help community banks reach institutional capital

Techub News, citing a post from @Delphi_Digital, reported that Avalanche may offer a path for community banks to access institutional capital. The analysis argues that loan securitization is currently expensive, with a single transaction often needing to exceed $500 million to be economically viable. That leaves smaller loan portfolios with few practical options. According to the same view, the structure of traditional loan securitization creates a high entry barrier for community banks seeking links to institutional investors. If a blockchain network can reduce issuance costs while improving transparency, it could open a new liquidity route for small and mid-sized loan portfolios. The post also framed that possibility as a potential expansion point for real-world asset, or RWA, use cases.