Avalanche-Powered Gateway Revolutionizes Liquidity for Community Banks
Zach Anderson Nov 11, 2025 05:49
Intain and FIS leverage Avalanche blockchain to launch the Digital Liquidity Gateway, enhancing capital access for community banks in the US.
The Digital Liquidity Gateway, a new marketplace developed by Intain Markets and FIS, is set to transform the financial landscape for regional and community banks across the United States. Built on the Avalanche blockchain, this platform aims to provide these banks with enhanced access to institutional-grade liquidity, as reported by Avax.network.
Modernizing Asset-Backed Finance
The Digital Liquidity Gateway introduces sophisticated financial tools previously reserved for major institutions to approximately 2,000 regional and community banks. These banks, which play a pivotal role in small business and commercial real estate lending, often struggle with accessing broader investor capital. By integrating directly with FIS' core banking systems and employing artificial intelligence (AI) to automate workflows, the platform aims to streamline loan management and securitization processes.
Traditionally, banks pool loans and sell them to investors to free up capital for new lending. The Digital Liquidity Gateway leverages Intain’s Avalanche Layer-1 blockchain, enabling instant data verification and programmatic settlements. The platform is currently onboarding banks and investors, with expectations of handling hundreds of millions in transactions by the end of the year.
Expanding Capital Access and Strengthening Local Economies
Regional and community banks are crucial in financing small businesses and fostering local development but face challenges in accessing wider capital markets. The Digital Liquidity Gateway addresses this by creating a transparent marketplace for distributing loan portfolios directly to institutional investors.
Initial transactions between institutional partners have demonstrated the platform's capability to facilitate faster and more transparent interactions. The digitized onboarding and verification processes simplify due diligence and investment procedures, thus enabling banks to redeploy capital more efficiently while providing investors with greater confidence in the assets.
John Omahen, Head of FIS Digital Assets, emphasized the transformative potential of the platform, highlighting its ability to unlock capital markets for thousands of institutions, thereby enhancing lending capacity and competitiveness in loan products.
Avalanche's Role
Intain’s Avalanche Layer 1, supported by AvaCloud, showcases Avalanche's capability to create compliant networks tailored for financial institutions. This collaboration exemplifies how Avalanche’s technology can modernize existing financial infrastructure, facilitating faster and more transparent transactions.
John Wu, President of Ava Labs, noted the impact of providing institutions with efficient capital market access, which enables them to offer better rates and more credit to underserved communities. This partnership with Avalanche is seen as a step toward modernizing real-world finance, empowering community banks to expand credit access and strengthen local economies.
A Broader Step Toward Modern Finance
The partnership among Intain, FIS, and Avalanche underscores the evolution of blockchain from a conceptual idea to practical financial infrastructure. As institutions modernize their lending, settlement, and payment systems with purpose-built networks, Avalanche's architecture provides the foundation for developing secure and transparent systems.
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