Avalanche L1s are roaring post the 9000 upgrade because now customization can be done at a granular level to support industry-specific needs. In our previous post, we saw how these upgrades motivated the mobility sector to choose Avalanche L1s. In this piece, we’ll see how this stack has been identified as a game changer for the finance sector, including the CeFi and DeFi space. For specific information, we’ll directly dive into the top CeFi and DeFi L1s that are building on Avalanche, understanding what exactly encouraged them to choose this appchain stack. So without any further ado, let’s get started.
Avalanche L1 for Finance: Motivations Driving Different Projects To Build With this L1 Stack
From the vantage point, most of the finance-based projects often look for compliance, scalability, security, and performance in any stack for custom chains. But, new-age finance projects look for way more than this. Avalanche L1s are delivering that to CeFi and DeFi to get motivated to choose it as a go-to layer for development. Let’s look at a few projects around the CeFi and DeFi category to understand this;
Avalanche L1s stack is the go-to choice for world-class CeFi projects but why: A Project Oriented POV
Top CeFi companies in mainstream categories have opted Avalanche L1 as their appchain stack to build a sovereign chain that can match their changing business needs and meanwhile match with the current standards of the finance industry. Let’s dive deeper:
1.Institutional Payments:
Institutions are looking for a few things to be assured upfront while using blockchain technology like speed and settlement, programmability, global reach and interop. Avalanche L1s are purpose built for that because you can integrate access controls, specify accountability and auditability. That’s why these CeFi players around institutional payments chose Avalanche L1s;
- Onyx by JP Morgan & Chase Co.
JP Morgan & Chase Co., the prominent global financial holding company, is using Avalanche’s custom, permissionless Evergreen subnet for their Onyx platform. The launch aims to embrace web3 strategy to streamline their repo operations & settlement. The platform is currently used by major financial institutions like Goldman Sachs, DBS Bank, and BNP Paribas. JP Morgan has picked Avalanche Subnet for the following core reasons:
- Representing all the investments as tokenized funds to standardize plus automate the funding, order execution, and settlement for both their traditional asset classes and alts required a purpose built stack for meeting best outcomes.
- Increased efficiency and scalability through deployment of smart contracts that represent discretionary portfolios that are easily programmable.
- Avalanche L1’s seamless integration with 3rd party services has allowed the chain to include Account Abstraction concepts through Biconomy’s Paymaster service. This has abstracted the complexities related to payment and transaction fee settlement
- Complete sovereignty dedicated throughout to process 100M+ annual B2B payment transactions.
- ANZ’s Subnet:
Australia and New Zealand Banking Group (ANZ), which serves over 8.5 million customers across nearly 30 markets, collaborated with Chainlink to improve the settlement of tokenized assets using an Avalanche L1. By integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) with
Speaking about this, Anurag Soin- the Product Lead Digital Added Services at ANZ said, “Avalanche’s Evergreen Subnets have allowed ANZ to join the list of institutions exploring new use cases and business models while leveraging customizable networks like Avalanche.”
Below are the main reasons that encouraged to opt for ANZ utilized its own Avalanche L1:
Here are the reasons that encouraged ANZ to build with Avalanche:
- Smooth integration and interaction with Ethereum-based assets.
- Secure, efficient, and tailored transaction processes with permissioning and Custom Gas Token.
- Simplified cross-chain DvP settlements through atomic transactions.
- Zero backend complexities to provide a seamless frontend experience for users.
2. Asset and Investment Management:
Projects that are built for asset and investment management often face challenges such as adding fine-grained permissions in the smart contract, customizing the validator setup, ensuring secure and compliant operations, and most importantly to achieve interoperability with the legacy systems and infrastructure. Avalanche L1 stack is designed to address all these shortcomings and a number of additional benefits. Here’s how the below mentioned projects used Avalanche L1s in their best of capabilities to overcome challenges;
- Inversion Capital
Inversion Capital has been tackling one of crypto’s biggest challenges, which is adoption, by using Avalanche’s Layer 1 (L1) capabilities. With this, Inversion aims to transition their traditional businesses onto blockchain rails, bringing its 1B+ users on-chain.
To put it in a nutshell, below are the key reasons Inversion Capital launched their own Avalanche L1:
- Avalanche enables Inversion to apply permissions across multiple levels—be it validators, smart contract deployers, or transactions.
- Avalanche’s support for wallet and transaction privacy through eERC20 standards safeguards users’ confidentiality on Inversion while maintaining the adherence to ERC standards.
- EVM compatibility helps Inversion to attract more developers and assets.
- Native Interoperability of Avalanche allows Inversion to seamlessly integrate existing systems and build critical infrastructure.
- With the Avalanche9000 network upgrade, Avalanche L1’s launch and management has been effortless and cost-efficient for Inversion; no more a 2000 AVAX compulsion to launch their own validator sets.
- With customization in gas and staking fees and tokens, Inversion gets the flexibility to creatively establish its validator set while adding real utility and value to its native token.
3. Liquidity:
Liquidity-focused projects seek to tackle key issues, such as fragmented liquidity pools spread across multiple chains, causing inefficient markets and higher slippage. High transaction fees and slow processing inhibit active trading and reduce liquidity provider motivation;thereby, deleting a lot of use cases like perps, money markets and CLOB based models. Additionally, limited access to asset classes, coupled with regulatory hurdles impacts participation, especially from institutional players. Also, security concerns impact user trust in liquidity solutions. By creating their own Avalanche Layer 1, these projects seek to unify liquidity, lower costs, increase transaction speed, enhance incentives, and ensure regulatory compliance to build deeper, more efficient, and accessible liquidity ecosystems.
- Dinari Finance
Dinari Finance, the leader in offering tokenized U.S. public securities, has launched its Avalanche L1 chain to achieve omni-chain liquidity and seamless settlement for all the Dinari’s partner networks. Dinari manages 25K+ customers and 150+ assets across top 80 countries.
A sovereign L1 allows Dinari Financial Network to be compatible with diverse blockchain environments through the omni chain capability while Avalanche offers the underlying consensus layer for sub-second finality, automation of compliance, and network’s composability across various DeFi and institutional partners.
This launch represents a foundational milestone toward enabling scalable, secure, and regulated round-the-clock trading of U.S. equities. It allows investors globally to access capital markets through a unified, transparent infrastructure layer. Similar to the DTCC’s role in traditional finance, Dinari’s blockchain is designed to uphold standards and facilitate settlement via a neutral coordination layer—tailored to meet the demands of modern markets.
4. Asset Management:
Asset Management solutions are booming in finance, but at the same time, they face challenges such as scalability bottlenecks, high transaction fees, lack of interoperability, limited privacy, and rigidity in customizing blockchain parameters. Avalanche Layer 1 solves these by offering high throughput and near-instant transaction finality, reducing latency and costs critical for active asset management. Its native interoperability facilitates seamless integration with other blockchains, improving liquidity access. Let’s see how projects in asset management category have been utilizing this stack:
- IntainMarkets
Intain Inc, the global platform in structured finance and administration earlier launched its Avalanche Subnet (now Avalanche L1); IntainMarkets. Intain manages a huge ecosystem with 240K loan reviews and $23B deals onboarded on the platforms. With IntainMarkets, Intain Inc. has been able to solve complex finance-related challenges while fulfilling the regulatory and other application-specific requirements that are integral to sustain in a market that has created 2T of asset-backed and mortgage-backed securities in 2022 (as per SIFMA).
Besides the key features; compliance and customization, the major benefit that Intain gets from Avalanche is fast transaction processing. Through the traditional off-chain approach, the platform has made some sub-$100M transactions which were prohibitively expensive. Now with an on-chain platform will enable IntainMARKETS to make $8–10 million transactions while maintaining economic viability.
Avalanche L1s are Equally Suitable for DeFi Chains as well
DeFi projects that are leading in the current space; either by TVL, innovative features, unique offerings, user trust, and so on, have already opted to build with Avalanche L1 stack. Below are the top DeFi projects are thriving with this appchain stack amid the challenges in the finance industry:
1.Trading, Exchange & Investment:
Avalanche Layer 1 is an ideal stack for decentralized exchanges to achieve flexible TPS, fast finality, reduced latency and optimized trading costs critical for active markets. Its unique multi-chain architecture (X-Chain, C-Chain, P-Chain) optimizes different blockchain functions such as asset creation, smart contract execution, and staking coordination, improving efficiency. Here’s how Dexalot L1 and Watr is doing this:
- Dexalot L1
Dexalot, the popular non-custodial and omni-chain DEX that handles 964M+ transactions and $31.5B+ trades in volume, has been operating its Layer-1 chain powered by Avalanche to bring sub-second execution of trades similar to centralized exchanges but on-chain. The L1 currently has a TVL of $4.11M, 6.045 TPS, and total transactions as 359.36M. With Avalanche L1, Dexalot get the following capabilities:
- Ultrafast transaction finality.
- Intuitive UI/UX.
- Reduced Slippage.
- Full possession of assets to users.
- Integration with messaging passing protocol; LayerZero.
- Greater efficiency for cross chain operations because of Avalanche Wrap Messaging.
- Hybrid architecture to deposit assets on the Avalanche C-Chain and trade them on the L1.
- Watr
Watr; the purpose-built blockchain infrastructure with a $20 Trillion global economy has confirmed its migration to an Avalanche L1-powered sovereign chain to align with the DeFi future.
Regarding this, Maryam Ayati, the Founder and President of Watr Foundation mentioned, “Established Web3 concepts such as DeFi, Decentralized Identity, and smart contracts can address fundamental constraints in commodity financing, compliance, and trade,” said “Building with Avalanche allows us to leapfrog the development cycle and leverage its ecosystem’s size and security to decisively take on this opportunity.”
Avalanche L1 provides Watr the following abilities to make a difference across the commodities and trading industry:
- Untapped Liquidity
- Programmable smart contracts for automated trade execution and risk tackling.
- Reduced fraud through Trust-based, identity-based transactions.
- Enhanced compliance and provenance, and sustainability into trade.
- Ability to move liquid capital and finance assets moving at lightning fast speed.
2. Derivatives and Collateral Management:
Avalanche Layer 1 solves critical challenges for derivatives trading and collateral management by enabling high-speed, low-cost transactions essential for timely execution and settlement. Its multi-collateral support allows traders to use various assets as collateral, improving flexibility and risk management. Avalanche’s native multi-chain architecture optimizes transaction processing, enabling efficient leverage trading, hedging, and position management. Here’s how Blocktcity is achieving benefits from Avalanche L1:
- Blockticity
Blockticity, the blockchain platform for securing global trade operations and documents has officially launched a Layer-1 chain powered by Avalanche. By doing this, Blockticity achieves a major milestone of migrating 45K+ COAs (Certificates of Authenticity) to its dedicated Avalanche-powered chain integrated with compliance. All these digital certificates contribute to 1.2B+ in authenticated, real-world goods.
Blockticity L1 has been serving as a powerful verification layer for the protocol as it ensures documents are AI-verifiable, standards-aligned, and tamper-evident. The L1 has 776.53K + total transactions and it offers quick transaction processing with 0.011 TPS. Also, Blockticity’s integration with LayerZero has enabled a highly composable infra for AI-native authentication of trades.
3.Loyalty & User Engagement:
Loyalty and user engagement solutions are another DeFi use case that get impacted from issues like fragmented loyalty ecosystems, lack of transparency, limited interoperability, and inefficient reward distribution. Avalanche Layer 1 addresses these by enabling secure, scalable, and cost-efficient blockchain infrastructure that empowers brands to tokenize loyalty points and customer data. Here’s how QChain is doing this:
- QChain (by Quboid)
Quboid, the full-stack platform for loyalty, rewards, and automated campaigns has built its dedicated Layer1 for loyalty ecosystems. Powered by sovereign architecture, scalability, and speed,
QChain is designed to offer a gasless experience so that users can engage in the network without getting bothered to pay transaction fees. With Avalanche L1, the chain offers a lightning-fast, secure, and efficient TPS experience with 0.05TPS, 7.70M+ transactions, 19K+ transactions.
Plus, the sovereign chain gives Quboid the full autonomy to unlock greater potential to accelerate innovation for their business.
4. Prediction Market:
Prediction Market is a highly sensitive and volatile finance niche, where security and compliance is of utmost importance. Avalanche Layer 1 supports prediction markets by providing a high-throughput, low-latency, and cost-efficient blockchain infrastructure that ensures fast transaction finality and smooth user experience. Its scalability allows platforms to handle millions of daily on-chain transactions without congestion or high fees, critical for real-time forecasting.
- TradeXMarkets
TradeXMarkets, the leading platform designed for prediction and trading, has launched their custom prediction market on a custom chain built as Avalanche L1. TradeXMarkets utilizes this network to process its 50K+ daily on-chain transactions and it has total 2.29M+ transactions to date.
“Prediction markets have long been an untapped segment in decentralized finance (DeFi), and TradeX Markets is here to change that,” said Indrajeet Roy, Co-founder of TradeX Markets. “With a custom-built Avalanche L1, we’re providing users with a seamless, trustless experience, empowering them to forecast events with unparalleled speed and efficiency.”
Following are the key reasons that encouraged TradeXMarkets team to choose Avalanche L1:
- Quick launch and effortless management of the L1 chain through Avacloud.
- Ability to handle heavy daily transaction load (50K+).
- Instant execution and faster settlements.
- Ultra- low fee to offer fair participation for users.
- Greater scalability even during high network congestion.
- Enhanced security & compliance through customization.
If you want to launch your purpose built Avalanche l1 chain, you need the support of experts. And that’s where Zeeve’s role comes into fruition;
Planning Avalanche L1 for your finance project? Do it with Zeeve
Zeeve has a proven track record for successful launch of 15 + Avalanche L1s on its own managed infrastructure. These chains are from major industries, including DeFi, Gaming, AI, healthcare, general-purpose, and more. So, if you are planning to build your own purpose-built Avalanche L1 for finance, Zeeve can help, from rapid node & network setup to RPC configurations to validator node settings, integrations, and more.
For customization, Zeeve offers overc integration partners that we bring on Zeeve. Also, your L1 will be continuously monitored on an intuitive dashboard 24/7 to ensure performance and maintenance.
So, if you have any specific requirements that you want to integrate with your Avalanche L1 node, you can readily use them. Moreover, Cogitus will further amplify the development experience. Planning to set-up your next Avalanche L1 node, why wait? Write to us your requirements or set up a one-on-one call with our experts, where we can provide you with an Avalanche L1 demo.
