Avalanche: From Digital Identity in the UAE to Finance in South Korea

Avalanche is gaining traction among institutions. In the United Arab Emirates, its technology will support the digital vault of UAE PASS, a service that allows for the storage and sharing of official documents. In South Korea, it is part of the projects for the tokenization of financial markets, as authorities prepare for the arrival of stocks, bonds, and funds on the blockchain. Here’s an overview of these two pieces of information.

Key points of this article:

• The United Arab Emirates has chosen Avalanche to evolve the blockchain infrastructure of UAE PASS into a secure Digital Vault.

• In South Korea, Avalanche announces its participation in the future tokenization of financial markets, although the regulator has not confirmed the precise use of its technology.

United Arab Emirates: Avalanche for the UAE PASS Vault

UAE PASS allows citizens, residents, and visitors to identify themselves online, sign documents, and access public or private services. According to Avalanche, the platform has 12.5 million users, provides access to over 15,000 services, and connects more than 350 entities.

The announced project concerns a specific function of this digital identity: the Digital Vault. This vault allows for the storage and sharing of verified official documents. The federal authority TDRA plans to evolve its blockchain infrastructure towards a dedicated L1 Avalanche. The chain is expected to help recipient entities verify the authenticity of documents and detect any modifications.

A dedicated chain also allows the operator to define its access rules and configuration. However, it is important to distinguish the size of UAE PASS from that of the vault: the 12.5 million people are users of the identity platform as a whole, and not a published number of active users on Avalanche. The announcement does not imply that all identity data of residents is recorded on a blockchain.

South Korea: Avalanche Claims a Role in Market Tokenization

The South Korean Financial Services Commission has presented a roadmap to enable the issuance and trading of tokenized securities. It ultimately aims at stocks, bonds, and funds, with the participation of the Korean central depository in building the infrastructure.

Deployment is set to begin in February 2027 with certain funds and bonds aimed at institutional investors, as well as tokenized unlisted stocks through a trust structure. South Korea also plans to study a pilot project for listed stocks. The extension to securities offered to the general public, and then the settlement directly on the blockchain, would come in later phases.

In a publication dedicated to this announcement, Avalanche claims that this evolution of the Korean markets will rely on its technology. The regulator's statement confirms the roadmap but does not name Avalanche and does not specify which blockchain will serve the different phases. The exact role of the network in the national infrastructure is therefore not established by the Korean authorities at this stage.

In the UAE, the announced use of Avalanche concerns a defined function of UAE PASS: the verification of documents in its digital vault. In South Korea, Avalanche claims a place in a broader tokenization project, the timeline and technical choices of which remain to be clarified. These two announcements reflect the interest of institutions in blockchain, and this is not new.

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