Institutional Adoption of Avalanche Grows: A Look at AVAX One Formation and More Integrations

Avalanche has seen a marked increase in institutional adoption, with major financial entities integrating its blockchain for tokenization, settlements, and Decentralized Finance (DeFi) applications. The platform's subnet architecture, which supports customizable, high-throughput networks, has facilitated this shift. 

For instance, AVAX One, a rebranded Nasdaq-listed company formerly known as AgriFORCE Growing Systems, announced plans to raise approximately $550 million to accumulate AVAX tokens, aiming for holdings exceeding $700 million through phased purchases of locked tokens from the Avalanche Foundation. 

Anthony Scaramucci, founder of SkyBridge Capital, joined as the lead strategic advisor, describing Avalanche as a versatile Layer-1 blockchain due to its sub-second finality and low transaction costs. This development follows Scaramucci's earlier deployment of $300 million in tokenized hedge funds on the network. 

Moreover, traditional finance firms such as J.P. Morgan, Citi, KKR, Apollo Global Management, BlackRock, and Visa have adopted Avalanche for various use cases, contributing to a surge in on-chain activity. As a result, subnets now process over 18.5 million daily transactions in the third quarter of 2025. 

Key Treasury and Advisory Developments on Avalanche: Formation of AVAX One

The formation of AVAX One represents a significant step in institutional engagement with Avalanche. Backed by Hivemind Capital, the company has positioned itself as the first publicly traded entity focused on an AVAX treasury strategy. Its capital-raising target of $550 million will fund the acquisition of locked AVAX tokens from the Avalanche Foundation in structured phases, ensuring long-term alignment through staking and other network participation mechanisms. 

Scaramucci's advisory role builds on his prior involvement. He has publicly referred to Avalanche as the "Swiss Army Knife" of Layer-1 blockchains, emphasizing its adaptability for applications in real-world assets, fintech, and insurance technology.

The Avalanche Foundation's strategy with the proceeds involves reallocating funds into real-world assets, making further AVAX purchases, and granting funds to bolster the ecosystem. This approach aims to enhance liquidity and stability, with the Foundation maintaining a treasury exceeding $3 billion for initiatives such as the recent $250 million locked-token sale, led by Galaxy Digital, Dragonfly, and ParaFi Capital, in preparation for network upgrades. 

Traditional Finance Integrations with Avalanche

Several major financial institutions have integrated Avalanche's blockchain technology into their operations, leveraging its subnets for efficient tokenization, settlements, and compliance-focused applications. These collaborations, detailed below, demonstrate the platform's ability to handle high-volume transactions and real-world assets as of September 2025:

JP Morgan
JP Morgan has utilized Avalanche through its Onyx blockchain platform for proof-of-concepts in tokenized asset settlements and portfolio management. In collaboration with Apollo Global Management under Singapore's Project Guardian, Onyx connects to an Avalanche Evergreen Subnet via LayerZero, enabling the automation of discretionary portfolios worth $5.5 trillion.

Citi
Citi has conducted tests on Avalanche subnets for foreign exchange trades and trade finance tokenization, demonstrating sub-second execution and compliance features. Additional proof-of-concepts with Wellington Management and WisdomTree involved tokenizing private funds on the Spruce Subnet, with a focus on multi-level permissioning and EVM compatibility.

KKR
KKR has tokenized portions of its Health Care Strategic Growth Fund II on Avalanche through Securitize, providing qualified investors with blockchain-based access and streamlined settlements. This initiative reduces administrative costs and improves liquidity in alternative investments.

Apollo Global Management
Apollo Global Management has explored real estate and private credit tokenization on Avalanche, launching the ACRED tokenized feeder fund across multiple chains, including Avalanche, for automated management and interoperability. Partnerships under Project Guardian further test personalized portfolio construction using tokenized alternatives.

BlackRock
BlackRock has expanded its $3 billion USD Institutional Digital Liquidity Fund (BUIDL) to Avalanche, integrating with DeFi protocols like Euler for lending and collateral purposes. This represents BlackRock's initial direct entry into DeFi, with sBUIDL enabling yield-bearing features.

Visa
Visa has adopted Avalanche for stablecoin settlements, supporting tokens like PYUSD, USDG, and EURC, citing its sub-second finality and low fees for cross-border payments. This addition complements Visa's existing support for Ethereum and Solana.

SDX Web3
In Europe, Switzerland's SDX Web3 has selected Avalanche for institutional-grade DeFi services, offering custody, staking, and tokenized asset solutions to clients. This includes AVAX staking rewards and integrated monitoring, accelerating adoption in the region.

Network Upgrades Supporting Adoption

The Etna upgrade, also known as Avalanche9000, has enhanced subnet sovereignty by allowing Layer-1 blockchains to operate independently without mandating Primary Network validation. This reduces costs by up to 96% on the C-Chain and simplifies launches, featuring dynamic fees on the P-Chain. These improvements position Avalanche to handle growing enterprise demands, including those related to privacy and accessibility for tokenization.

In conclusion, Avalanche's capabilities include sub-second transaction finality, customizable subnets processing millions of daily transactions, and integrations with major institutions for tokenization and settlements. Its architecture supports over $340 million in institutional allocations and facilitates real-world asset management at scale. 

With the AVAX One formation driving the purchase of AVAX tokens, the blockchain protocol is expected to attract more investors in the crypto space. 

Sources:

• CoinDesk: https://www.coindesk.com/business/2025/09/22/anthony-scaramucci-involved-as-agriforce-one-rebrands-to-avax-treasury-company-shares-rise-132
• The Block: https://www.theblock.co/post/331101/anticipated-avalanche9000-upgrade-goes-live-reducing-costs-and-making-it-easier-to-launch-avalanche-subnets
• Avalanche Official Blog: https://www.avax.network/about/blog/etna-enhancing-the-sovereignty-of-avalanche-l1-networks