Avalanche Powers FIS and Intain to Launch Digital Liquidity Gateway for U.S. Banks

FIS and Intain Markets have collaborated to launch the Digital Liquidity Gateway on Avalanche, a blockchain-based marketplace. This platform is designed for U.S. regional and community banks, enabling them to buy, sell, and securitize loan portfolios with ease and transparency. Built on Avalanche’s blockchain, the platform integrates with FIS’s extensive network of over 20,000 financial institutions, enhancing liquidity access for approximately 2,000 smaller financial institutions across the U.S.

The Digital Liquidity Gateway serves as a bridge between local lenders and large-scale investors. It enables digital trading of loan portfolios—such as small business and commercial real estate loans—onchain. This approach modernizes traditional finance, streamlining a historically manual process by:

• Recording loan data on Avalanche’s blockchain for instant verification.
• Facilitating programmatic settlements using stablecoins like USDC.
• Tokenizing loans as non-fungible tokens (NFTs) to ensure traceability and prevent double-pledging.

This system creates a secondary market that allows community banks to engage in securitization without requiring complex structuring expertise.

FIS and Intain position the Digital Liquidity Gateway as a game-changer in asset-backed finance, automating processes traditionally bogged down by manual reconciliation. Key features include:

• Use of AI-driven automation for validating loan data prior to tokenization.
• Representing each loan as an NFT with embedded, verifiable data and ownership history.
• Instant stablecoin settlements powered by USDC, minimizing counterparty risks.
• Seamless integration with FIS’s core banking systems, involving over 20,000 institutions globally.

According to Siddhartha, CEO of Intain Markets, this platform provides transparency and efficiency for all participants, reshaping trust in the ecosystem.

Regional and community banks, critical financiers for small businesses and local projects, now gain access to institutional funding channels through the Digital Liquidity Gateway. Benefits include:

• Transparent networking with institutional investors.
• Automated onboarding and verification for faster due diligence.
• Enhanced capacity to redeploy capital efficiently into new loans.

John Omahen, Head of Digital Assets at FIS, highlighted the platform's impact: “This means more lending for small businesses, better loan products for consumers, and a more resilient banking sector.” Early transactions have demonstrated better data accuracy and smooth execution, with total transaction values expected to reach hundreds of millions by year-end.

The platform operates on Intain’s Avalanche Layer 1 blockchain, supported by AvaCloud technology. This deployment framework ensures:

• Creation of compliant blockchain networks tailored for financial institutions.
• Integration with existing FIS infrastructure, enabling reliable end-to-end connectivity.
• Auditability and data integrity, meeting regulatory and institutional standards.

Avalanche’s sub-second finality and deterministic settlement capabilities support tokenized assets and the secure trading of loans. By tokenizing loans as NFTs, the Digital Liquidity Gateway ensures immutability, prevents double-pledging, and enhances regulatory oversight.

By improving liquidity for smaller banks, the Digital Liquidity Gateway has a cascading positive impact on local economies, including:

• Increased lending opportunities for small businesses.
• Better loan terms for borrowers.
• Strengthened stability in regional financial systems.

Similar blockchain-backed platforms have emerged worldwide. For instance, a Japanese IT firm recently launched a tokenization platform leveraging AvaCloud, highlighting the growing global adoption of blockchain-based liquidity solutions.

The Digital Liquidity Gateway marks a paradigm shift in financial technology by showcasing blockchain as infrastructure rather than a speculative tool. By integrating Avalanche’s blockchain with FIS’s banking systems, it provides a transparent, automated channel for loan securitization. Small and mid-sized banks now gain unprecedented access to modernized capital markets, demonstrating that blockchain can enhance trust, efficiency, and compliance in traditional finance.