In the third quarter of 2026, the volume of onchain credit on the Avalanche network reached a record $37.4 million, marking a 34% increase compared to the previous quarter. Simultaneously, the value of tokenized US Treasuries on the platform rose to $545 million, representing a 14% quarterly growth and a fourfold increase since the start of the year.
The broader ecosystem of real-world assets (RWA) on Avalanche reached a total value of approximately $11.4 billion as of early October 2026. Institutional activity remains a key driver, with major participants including Aave, Grove Finance, Galaxy, and Centrifuge. These entities contribute to the development of structured credit products and the expansion of collateral options.
Aave recently launched its V4 upgrade on Avalanche, enabling the use of tokenized stocks as onchain collateral. Additionally, Grove Finance facilitated the first tokenized collateralized loan obligation (CLO) for Galaxy with a $50 million allocation. Grove has previously deployed $250 million into RWA projects on the network.
Despite the growth, analysts note that the market remains concentrated among a few institutional players. While the quarterly figures show momentum, the total loan volume remains small relative to the overall RWA value on the network. Detailed breakdowns of the specific sources of loan volume are currently unavailable from major data providers.
