Avalanche (AVAX) is carving a niche as a blockchain network with boundless scalability but one expert is highlighting its real-world use case in finance. Crypto expert Olivia Vande Woude says Avalanche will change the landscape for traditional finance as we know it.

Avalanche Will Modernize Legacy RTGS Systems

According to an X post, business development expert Olivia Vande Woude remarks that Avalanche will improve current offerings for mainstream finance. Right out the bat, Woude notes that the lowest hanging fruit for AVAX will be changing outdated rails in legacy finance.

Woude argues that rather than a wholesale replacement, an Avalanche integration will improve legacy RTGS systems like SWIFT and Fedwire. Perhaps, the biggest area of improvement will be in conventional post-trade infrastructure bogged down by fragmented reconciliation. Woude notes that the network can introduce real-time finality and liquidity efficiency for post-trade infrastructure.

Large exchange infrastructure is tipped to record seismic changes following an Avalanche integration, says Woude. While CBOE and ICE grapple with execution latency, Woud was Avalanche’s decentralization can reduce slippage for legacy exchanges.

“Avalanche does for finance what fiber optics did for telecom,” said Woude. “It’s replacing outdated rails with real-time, high-throughput, low-latency execution.”

Woude points out in her statement that Avalanche’s tamper-proof infrastructure will improve the batch processing systems employed by traditional custodians. The derivatives markets will receive their fair share of changes, leaning on Avalanche’s collateral optimization and margin logic based on advanced smart contracts.

Amid soaring regulatory changes in the US, traditional financial institutions can unlock new revenue streams in tokenization via blockchain-based integrations.

Benefits Extend To Funding Markets Amid Soaring AVAX Price

Woude highlights the benefits of an integration in short-term funding markets by leaning on its dynamic discounting. Furthermore, the blockchain offers programmable yield analytics designed to revolutionize the operations of repo settlements and liquidity management in funding markets.

An EVM compatibility will allow institutions to still deploy Ethereum-based smart contracts, smoothening the curve for tokenized funds. As the US SEC approves options trading for Ethereum spot ETFs, Avalanche can offer financial institutions permission chains for compliance while offering on-chain derivatives mirroring ETF performance.

“Avalanche isn’t just modernizing financial infrastructure, it’s reprogramming it,” said Woude. “Institutions adopting Avalanche in turn gain a meaningful edge in speed, efficiency, and transparency.”

AVAX price has gained nearly 8% over the last day driven by a broader crypto market rebound and rising institutional adoption for Avalanche. AVAX is trading at $20 while daily trading volumes have spiked by 7% buoyed by bullish chatter around the network.

The post Expert Outlines Reasons Why Avalanche Will Revolutionize Traditional Finance appeared first on CoinGape.

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Filed under: News - @ April 13, 2025 3:11 am