KEY FACTS: Avalanche teamed up with Gelato to launch "enterprise sovereign chains," a blockchain-as-a-service (BaaS) solution aimed at institutional adoption. This innovative offering allows companies to easily deploy fully customizable, independent blockchains, leveraging Avalanche’s scalable infrastructure and Gelato’s Rollup-as-a-Service (RaaS) tools, reducing the time, cost, and technical expertise needed for deployment. The sovereign chains, interoperable via Avalanche’s InterChain Messaging protocol, cater to industries like fintech and gaming, enabling secure, compliant, and tailored applications while connecting to the broader Avalanche ecosystem.

Source: Avalanche / X

Avalanche and Gelato Unveil Enterprise Sovereign Chains

Avalanche, a leading high-performance blockchain platform, has partnered with Gelato, a blockchain developer platform specializing in automation tools, to launch a blockchain-as-a-service (BaaS) solution tailored specifically for institutional use. This new offering, dubbed "enterprise sovereign chains," was announced on March 28 and aims to meet the surging demand for customizable, secure, and interoperable blockchain infrastructure, which will be suitable for institutional adoption of Web3 technologies.

Gelato supercharges Avalanche L1s with their blockchain deployment platform🔺

Source As demand for customizable and interoperable blockchain infrastructure grows, @gelatonetwork’s Blockchain-as-a-Service (BaaS) unlocks new options for enterprise and Web3 teams.

The collaboration between Avalanche and Gelato comes at what industry insiders call a “tipping point” for blockchain technology in the enterprise sector. As financial institutions, gaming companies, and other large-scale organizations increasingly explore decentralized solutions, the need for sovereign blockchain infrastructure has become more pronounced. Sovereign blockchains are independent networks that offer full control and interoperability. This new service promises to deliver just that, enabling companies to deploy fully sovereign blockchains quickly, cost-effectively, and with seamless integration into Avalanche’s broader ecosystem. Martin Eckardt, Sr. Director of Developer Relations at Ava Labs calls it a paradigm shift. In his words:

“Avalanche L1s mark a paradigm shift in blockchain infrastructure, enabling a future where every application can run on its own sovereign chain, optimized for its unique needs...”

Gelato, a platform with a proven track record of building blockchain solutions for major players like Kraken and Animoca Brands, is leveraging Avalanche’s scalable infrastructure to roll out this innovative service. The enterprise sovereign chains are designed to simplify the traditionally complex and resource-intensive process of launching a blockchain. According to Luis Schliesske, Gelato’s founder, the new product dramatically reduces both the technical expertise and engineering resources required to get a blockchain up and running.

“Previously, launching a blockchain was a daunting task, it demanded extensive technical knowledge and significant engineering manpower. With Gelato’s RaaS [Rollup-as-a-Service] on Avalanche, we’ve streamlined everything—from deployment and upgrades to real-time monitoring and scaling. This is about making blockchain accessible to institutions without compromising on power or flexibility.”

The service utilizes Avalanche’s InterChain Messaging (ICM) protocol, which ensures full interoperability between these sovereign chains and other networks within the Avalanche ecosystem. This feature is particularly appealing for enterprises looking to maintain independence while still benefiting from the broader blockchain network’s capabilities. Gelato’s solution promises to cater to a wide range of advanced applications, from financial technology firms needing robust identity verification (KYC) processes to a gaming company crafting a specialized in-game economy.

The concept of “sovereign chains” refers to independent blockchain networks that operate under the full control of their creators, as opposed to relying on shared or public infrastructure. For institutions, this level of autonomy is critical. It allows them to customize their blockchain’s rules, security protocols, and operational parameters to suit their specific needs, all while maintaining the ability to interact with other networks when necessary.

This launch builds on Avalanche’s reputation as a high-performance blockchain platform known for its revolutionary three-part Layer 1 architecture and near-instant transaction finality powered by the Avalanche Consensus Mechanism. The integration of Gelato’s automation tools with Avalanche’s scalable infrastructure offers a comprehensive ecosystem that prioritizes security, efficiency, and adaptability, which are key considerations for institutional clients hesitant to dive into the decentralized world.

Recent months have seen major financial players, including banks and asset managers, exploring ways to integrate digital assets and decentralized systems into their operations. The launch of enterprise sovereign chains could serve as a catalyst, providing these organizations with a practical and tailored entry point into the blockchain space.

One of the standout features of Gelato’s RaaS solution is its ability to drastically reduce the time and cost associated with blockchain deployment. In the past, setting up a custom blockchain could take months and require substantial upfront investment. Now, thanks to this collaboration, companies can launch their sovereign chains in a fraction of the time and at a lower cost, all while benefiting from Avalanche’s robust technical foundation.
Schliesske highlighted the practical implications of this innovation:

"The future of enterprise blockchain is sovereign, interoperable, and invisible to the end user,”... “With Avalanche L1 BaaS, we give builders the infrastructure to launch highly customizable blockchains without compromising on UX, scalability, or security. Whether you're a fintech, gaming studio, or decentralized ecosystem, Gelato abstracts the complexity so you can focus on building next-generation onchain products.”

The interoperability provided by Avalanche ICM further enhances the appeal of these sovereign chains. Institutions can operate their independent networks while still connecting to other Avalanche-based chains or even external blockchain ecosystems, ensuring they are not isolated from the broader Web3 landscape. This balance of sovereignty and connectivity is a key selling point, particularly for industries where regulatory compliance and cross-platform functionality are non-negotiable.

For Avalanche, this partnership represents another step forward in its mission to become the go-to blockchain platform for institutional adoption. The network has already made significant strides in this area, with recent developments like the Avalanche9000 upgrade in December 2024, which slashed subnet deployment costs by 99.9% and reduced network fees by 96%. The collaboration with Gelato builds on this momentum, positioning Avalanche as a leader in the race to onboard enterprises into the blockchain fold.

Avalanche’s ecosystem has long been praised for its flexibility, thanks to its multichain structure, which includes the C-Chain for smart contracts, the P-Chain for staking and validator coordination, and the X-Chain for asset transfers. The addition of Gelato’s enterprise-focused RaaS solution enhances this flexibility, offering a turnkey option for organizations that might otherwise lack the resources or expertise to build their blockchain from scratch.

As institutions grapple with the complexities of digital transformation, solutions like this one could bridge the gap between traditional systems and decentralized technologies. With the blockchain industry at a crossroads, the Avalanche-Gelato partnership could prove to be a defining moment, one that brings the promise of decentralization closer to reality for the world’s largest organizations.

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