Even as AVAX has stayed under pressure in 2026, Avalanche’s footprint in tokenized real-world assets has kept expanding. Data from RWA.xyz shows the value of tokenized assets on Avalanche has reached $2.1 billion, up more than 60% from a month earlier, putting the network among the top five public chains in the RWA segment.
That contrast sits at the center of the story: growth in on-chain tokenized assets has not been matched by a similar move in AVAX. The source article ties that expansion to Avalanche’s long-running work in tokenization infrastructure and to adoption by large financial and industrial groups.
BUIDL became a major driver on Avalanche
In the RWA market, capital efficiency, composability and regulatory depth remain central. The article says Avalanche has gained ground through the expansion of BlackRock’s tokenized money market fund BUIDL and through tokenization work led by infrastructure provider Securitize.
In March 2024, BlackRock and Securitize launched BUIDL, a tokenized money market fund investing mainly in U.S. Treasuries, cash and repurchase agreements. It was designed to offer qualified investors a yield-bearing dollar instrument on-chain. At the time, the launch was widely seen as an early test. Two years later, the scale is much larger.
According to the latest figures cited from RWA.xyz, BUIDL’s assets on Avalanche rose 105% in a single week, climbing from $464 million to more than $900 million, with weekly net inflows of $436 million. That surge helped lift Avalanche’s tokenized RWA total value locked to $2.1 billion, a 60% increase from the same point a month earlier.
BUIDL’s total assets under management across all networks are now close to $2.87 billion. Avalanche accounts for more than one-third of the fund’s total assets, making it the second-largest distribution network after Ethereum. Within Avalanche’s RWA ecosystem, BUIDL alone represents 43% of the total.
The article also notes that sBUIDL, a derivative token pegged 1:1 to BUIDL fund shares, has been approved as eligible collateral on the non-custodial lending protocol Euler. Qualified users can post sBUIDL and borrow on-chain liquidity such as USDC or AUSD. In the article’s framing, that is a case of a traditional asset-management product connecting directly with DeFi composability while preserving Treasury-linked yield exposure.
Securitize added tokenized equity issuance
Beyond fund products, Securitize also completed an issuer-sponsored tokenized offering of its NYSE-listed common stock, SECZ, on Avalanche and Solana.
The article contrasts that with offshore-wrapped synthetic assets, arguing that native on-chain issuance of the same stock shows tokenized equities can fit within the current securities-law framework. In that reading, Avalanche is extending beyond its role as a crypto network and moving closer to regulated securities settlement infrastructure.
Japan and South Korea are adding enterprise use cases
The article says Asia’s tokenization push differs from the U.S. and Europe. Instead of focusing mainly on securities and asset-management compliance at the top layer, projects in the region are showing up in retail payments, corporate settlement and cross-border treasury operations.
On July 13, Progmat, backed by Mitsubishi UFJ Trust, Mizuho, the Tokyo Stock Exchange, SBI and others, completed a major infrastructure upgrade. It migrated tokenized assets worth more than JPY 452 billion, or about $2.7 billion, from a Corda 5-based private permissioned chain to Avalanche.
Progmat holds 53% market share in Japan’s security token market, according to the article, and assets issued through its platform account for 64.6% of Japan’s total tokenized issuance, spanning categories such as real estate and corporate bonds. One reason for the move, the article says, is that consortium chains can become closed liquidity islands, limiting links to broader DeFi ecosystems. On Avalanche, transfer speeds for asset rights can improve by 3x to 5x, while final transaction confirmation can be cut to under two seconds. The migration is also described as laying groundwork for 24/7 real-time settlement in future products including Japanese government bonds and on-chain repo agreements.
Japan’s payments market is also part of the picture. TIS, a major Japanese payments company handling $2 trillion in annual credit-card and payment transaction processing volume, has launched a multi-token payment and settlement platform through AvaCloud. The platform supports stablecoins and tokenized deposits issued by banks and corporations, and is intended to support real-time settlement for central bank digital currencies later on.
In South Korea, the use cases are closer to daily consumption and corporate operations. On July 10, Hyundai Motor Group’s credit-card unit launched an internal cross-border remittance system on Avalanche, becoming the first large South Korean company to publicly adopt stablecoins for cross-border treasury settlement. In the first pilot phase, a $20,000 test transfer between Hyundai’s U.S. and Mexican subsidiaries took an average of seven minutes, compared with three to four hours over SWIFT, cutting time costs by 97%.
For payment rails, South Korean e-commerce payments company NHN KCP built what the article describes as the country’s first payment-dedicated mainnet through AvaCloud in mid-April. It reduced traditional T+1 to T+3 settlement delays to sub-second speeds. In a pilot with the mobile payments app Payco, payment confirmation after a QR code scan took two seconds.
At the consumer level, KB Kookmin Card worked with Avalanche at the end of March this year on a hybrid stablecoin credit-card payment system. Purchases first draw down balances in a KRW stablecoin, with any shortfall automatically covered through a conventional credit line. The article also mentions that in November last year, NongHyup Bank, together with Mastercard and other institutions, piloted a stablecoin-based program on Avalanche, though the provided summary does not include fuller details.
Custom L1 design helps enterprise adoption but weakens token capture
From Wall Street to Japan and South Korea, more institutions are shifting from consortium-chain setups or private systems to Avalanche. The article attributes much of that to Avalanche’s customized L1, or subnet, design.
Using low-code tools such as AvaCloud, enterprises can build dedicated L1 networks tailored to their own needs across several areas:
- Geographic restrictions: validator nodes can be placed in specific jurisdictions to satisfy data-sovereignty and cross-border compliance requirements.
- Access controls: KYC and AML rules can be embedded at the protocol level, blocking interaction from wallets that do not meet identity requirements.
- Performance isolation: dedicated L1s run with separate compute resources and gas-pricing logic, avoiding congestion spillover from the public network.
The article describes that as a compromise between sovereign control and public-chain security. Companies get a blockchain environment they can control more directly while still keeping access to shared security and broader ecosystem interoperability.
But the same structure creates what the article calls Avalanche’s hardest strategic problem in tokenization: value capture. Even with more than $2.1 billion in RWAs on Avalanche and large institutions joining the network, AVAX is still down more than 50% this year.
The source article argues that the issue is rooted in the subnet model itself. To avoid balance-sheet risk tied to token volatility, enterprises running dedicated L1s rarely use AVAX as the medium for transactions. They usually choose stablecoins or tokenized deposits to pay gas instead. That leaves the Avalanche mainnet acting mainly as a low-cost final settlement ledger and security layer, while a large share of transaction value does not flow back to AVAX holders through mechanisms such as gas burning.
That disconnect produces what the article describes as a strong ecosystem but a weak token link. Token holders bear price volatility and lock-up risk, while not fully sharing in the gains from ecosystem expansion. Whether Avalanche’s RWA strategy can eventually translate into stronger value accrual for AVAX, the article says, remains an open question.