Avalanche powers Digital Liquidity Gateway to enhance loan securitization for US community banks

Community banks have long been stuck in a frustrating paradox. They originate massive volumes of loans, from small-business lending to commercial real estate, but accessing the securitization markets that would let them offload risk and free up capital has remained expensive, slow, and loaded with middlemen. A new platform built on Avalanche is designed to change that equation entirely.

FIS Global and Intain Markets launched the Digital Liquidity Gateway on November 11, 2025, creating a blockchain-based marketplace where roughly 2,000 US regional and community banks can tokenize individual loans, verify them using artificial intelligence, and sell them directly to institutional investors. The platform runs on Intain’s Avalanche Layer-1 blockchain with AvaCloud infrastructure backing it.

How the Digital Liquidity Gateway works

Individual loans get minted as non-fungible tokens, each one tied to its underlying documentation and verified through AI-powered reconciliation. That creates an on-chain record of every loan’s provenance, payment history, and collateral status. Double-pledging, a persistent problem in traditional loan markets where the same collateral gets promised to multiple parties, becomes structurally difficult when every pledge is visible on-chain.

Settlement happens programmatically, including support for stablecoin payments using USDC. Traditional securitization settlement can take days or weeks, tying up capital and creating counterparty risk at every step. Automating those workflows compresses timelines and strips out layers of operational cost that have historically made securitization uneconomical for smaller loan pools.

The platform integrates directly with FIS’s core banking systems. FIS supports over 20,000 institutions globally, processing more than $9 trillion in transactions annually. Plugging a blockchain-native securitization tool into that existing infrastructure means community banks don’t need to rip out their tech stack to participate.

Why community banks need this

The roughly 2,000 small to mid-sized US banks this platform targets originate significant loan volumes but are too small to efficiently access the capital markets machinery that larger institutions take for granted. Securitization has traditionally required investment banks, rating agencies, trustees, servicers, and lawyers, with each intermediary taking a cut. For a $50 million pool of commercial real estate loans from a regional bank, the fixed costs of that process can make the whole exercise pointless.

The initial focus areas are commercial real estate and aviation finance. Partners involved in the project expect transaction volumes to reach hundreds of millions of dollars by the end of 2025.

Avalanche’s institutional play takes shape

Intain’s dedicated Avalanche Layer-1, backed by AvaCloud, gives the platform the throughput and compliance controls that regulated financial institutions require. The subnet model lets banks maintain appropriate access controls while still benefiting from blockchain’s transparency and immutability.

The use of USDC for stablecoin-based settlement reinforces the growing role of dollar-pegged stablecoins as the connective tissue between traditional finance and blockchain infrastructure, meeting banks in dollar-denominated transactions that settle faster and more transparently on-chain.

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