Can't on
Avalanche
We keep hearing what Avalanche can't do for institutional finance. So we built a proof of concept for all of it.
Two live Avalanche L1s on Fuji testnet. Standard Solidity. Contracts in the genesis block. Every button below sends a real on-chain transaction.
can't doChain-level sovereignty
L1-Private runs validatorOnly: true. Run a node. Discover the subnet. Watch it fail to peer. No blocks. No state. No data. You are not in the allowed set.
These work
Sync C-Chain (public):
docker run --rm avaplatform/avalanchego:v1.14.2 \ --network-id=fuji
Sync L1-Institutional (permissioned transactions, open sync):
docker run --rm avaplatform/avalanchego:v1.14.2 \ --network-id=fuji \ --track-subnets=2BJEeSX76ftRwicQ7196SZtoCV2srRLGnXJkgTAvVjheNeT2wP \ --partial-sync-primary-network=true
This fails
Sync L1-Private:
docker run --rm avaplatform/avalanchego:v1.14.2 \ --network-id=fuji \ --track-subnets=2SX9zJYSCoDksFru5G7mX9BGAxcfDrQRKQwGpQbB4WM5JFZrEq \ --partial-sync-primary-network=true
Each Avalanche L1 is a sovereign chain with its own validator set. Not a rollup. Not a sidechain. Its own network. Its own rules.
can't doProtocol-level permissioning
Generate a fresh wallet. Fund it. Try to transact on L1-Institutional. The VM itself rejects it — not a smart contract, not middleware, the execution layer. Then KYC the wallet and try the exact same transaction.
Generate a wallet
Creates a random wallet and funds it with gas on L1-Institutional.
Try to transact
This wallet has gas but is not on the txAllowList. The VM will reject it at the protocol level.
KYC + Retry
Submit KYC info to add the wallet to the allowlist, then retry the exact same transaction.
can't doCross-chain atomic settlement
Delivery-vs-Payment across two sovereign L1s. A seller tokenizes US Treasuries on L1-Private. A buyer bridges stablecoins from C-Chain via ICTT. The coordinator on L1-Institutional settles both legs atomically via ICM, or neither.
~150 lines of Solidity. View the settlement contract.
Public stablecoin on C-Chain
USTB26 on private chain
Terms: 1,000 USTB26 for 100,000 sUSD
Escrow USTB26, send ICM to coordinator
Both legs present triggers atomic settlement.
can't doOn-chain privacy
Sovereign validators keep outsiders from seeing the chain. But what about privacy between participants on the same chain? EncryptedERC uses zk-SNARKs (Groth16) + El-Gamal encryption on BabyJubJub to keep balances fully encrypted on-chain. Deployed live on L1-Institutional.
can't doStandard smart contracts
Every contract below is standard Solidity compiled with Foundry. Three were embedded in the genesis block — live at block 0, zero deployment step. No proprietary language. No vendor lock-in. Any Solidity developer can read, audit, or extend this code.
| Chain | Contract | Address | Note |
|---|---|---|---|
| C-Chain | SettlementStablecoin | 0x2ff27ba4C464387bD9A2aa1C188B10e98F39fe35 | sUSD |
| C-Chain | ERC20TokenHome | 0xb0E6e3E0b4f550865adDB10d6324E0F152fE688c | ICTT bridge |
| Institutional | InstitutionalAllowlist | 0xC0DE000000000000000000000000000000000001 | Genesis |
| Institutional | CrossChainDvP | 0xC0DE000000000000000000000000000000000003 | Genesis |
| Institutional | ERC20TokenRemote | 0xa4DfF80B4a1D748BF28BC4A271eD834689Ea3407 | sUSD bridge |
| Private | SecuritiesToken | 0xC0DE000000000000000000000000000000000004 | Genesis |
| Private | SecuritiesEscrow | 0xA4cD3b0Eb6E5Ab5d8CE4065BcCD70040ADAB1F00 | DvP lock |
0xC0DE0000000000000000000000000000000000040xA4cD3b0Eb6E5Ab5d8CE4065BcCD70040ADAB1F00can't doDeFi composability
The stablecoin starts on C-Chain — Avalanche's public EVM with access to DeFi protocols, liquidity, and on/off-ramps. ICTT bridges it into the permissioned chain for settlement. After settlement, proceeds can bridge back. Institutional settlement doesn't have to mean trapped capital.
can't doDaml
We also built a Daml-compatible VM that runs on Avalanche L1s. Same language, your infrastructure.
damlonavalanche.com