Avalanche has launched its latest Evergreen subnet, “Spruce,” with institutional partners T. Rowe Price Associates, WisdomTree, Wellington Management, and Cumberland on board. According to a blog post published by Avalanche on Wednesday, these financial institutions will use Spruce as a testnet to examine the benefits of executing and settling trades on-chain for various assets and applications.
The dapp platform stated that its Evergreen subnets, notably Spruce, are intended to “address many of the issues with permissioned DeFi precluding broader institutional adoption of public blockchain infrastructure.” A number of financial institutions have agreed to utilize Spruce as a testnet for a “variety of applications and assets to measure the benefits of on-chain trade execution and settlement.”
The testnet, according to the blog post, will enable “institutional participants to experience the full functionality of Avalanche’s subnet architecture without putting capital at risk.” Once the know-your-customer (KYC) checks are passed, the institutions’ wallets are issued non-transferable tokens. The Evergreen subnets are Ethereum virtual machine (EVM)-based chains with a “permissioned validator set and a custom gas token to power transactions.”
The announcement that many organizations have joined the Evergreen subnet comes less than a week after Avalanche announced the debut of the subnets, which are designed exclusively for institutional blockchain implementation. Avalanche stated on April 6 that traditional financial institutions will be able to “pursue their blockchain and digital asset strategies in private, permissioned chains with known and approved counterparties, while retaining the ability to communicate and interoperate with other Subnets through Avalanche’s native communication protocol called Avalanche Warp Messaging (AWM).”
Avalanche also introduced several subnets, including the Intain subnet, which is a tokenized Asset-Backed Securities marketplace. It also built the Deloitte subnet, which is a platform for FEMA money disbursements, through a strategic cooperation with Deloitte.
However, the financial institutions mentioned above are not the first to experiment with blockchain technology. For years, JPMorgan Chase, Goldman Sachs, and others have been researching the space.