Avalanche's new Spruce subnet, part of the Evergreen family, has attracted interest from traditional financial institutions. T. Rowe Price Associates, WisdomTree, Wellington Management, and Cumberland have all signed on to use it as a testnet to evaluate on-chain trades and settled transactions. It also provides a secure way for these firms to conduct KYC (Know Your Customer) without risking their capital.

The Spruce subnet is based on Ethereum virtual machine (EVM) and has a permissioned validator set along with a custom gas token to power the transactions. Avalanche also launched two other subnets, Intain for tokenized Asset-Backed Securities and Deloitte to facilitate FEMA fund disbursements.

In the ongoing quest to find innovative ways to trade, traditional financial institutions have been exploring the use of blockchain technology to facilitate transactions. Companies like JPMorgan Chase, Goldman Sachs, and the four aforementioned firms have been exploring this space for some time now.

Avalanche's Evergreen subnets are tailored to such firms. They offer a secure, permissioned environment where firm can test the blockchain's capabilities without putting capital at risk. These firms are provided with non-transferable tokens after KYC clearance. Evergreen subnets also allow them to communicate and inter-operate with other subnets via Wasteland Messaging (AWM).

Avalanche's latest move has opened up the blockchain space for traditional financial institutions. Not only does it make trading and settling on-chain easier but it ensures firms don't have to risk their own capital to do so. The integration with other subnets via AWM also make such transactions simpler and more efficient. Overall, Avalanche's Evergreen subnets are off to a great start, with a major share of the traditional finance sector jumping on board, and many more expected to join soon.



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