Nasdaq, the world’s second-largest stock exchange with more than $10 trillion market capitalization is on the brink of initiating XRP “Ripple Liquid Index” (RLX). It has successfully launched Ethereum and Bitcoin Liquidity Indices (ELX and BLX).
Nasdaq currently aids more than 4,000 global indices and has joined hands with Brave New Coin (BNC). This is the venture that guided the development of ELX and BLX indices. Further, BNC is looking to give birth to an XRP liquid index. This will enable users to access the real-time price of the token.
According to the BNC’s official website,
“This institutional endorsement is what investors have been waiting for as Nasdaq has plans to launch a bitcoin futures market alongside Intercontinental Exchange’s (ICE) Bakkt futures market which was due to launch on its platform on January 23 but has since been pushed back to an undetermined date in Q2 2019.”
Besides, BNC’s blog post related to the announcement mentioned that that “efforts are still underway by several vendors” to the beginning of first Bitcoin ETF in the Markets of the US.
According to the leading financial data firm, its procedure is designed to allow for “transparency of price [for] crypto assets.”
As of now, BNC is in its last stages of development of RLX (Ripple Liquid Index). The company is reported to be “working with a range of market participants” in order to start several other “custom basket indices.”
Fran Strajnar, the CEO of BNC commented on the initiation of the Bitcoin and Ethereum indices on Nasdaq. He said,
“The LX program was born out of a need for clear and transparent price discovery of liquid cryptographic assets and is a bigger need today then it was back in 2015 when we started this program.”
The Iosco Principles
BNC’s Liquid Index family says that it has unique auditing performed through IOSCO (International Organisation of Securities Commissions) principles. Strajnar also added,
“BNC endorses the IOSCO principles and fully embraces the IOSCO’s goals of addressing the obvious conflicts of interest in the benchmark-setting process, which the nascent crypto industry is vulnerable to.”
He went on to stress how cryptocurrency financial instruments are gradually coming to the major scene with time. He remarked,
“The crypto derivative wave is inevitable. Once custody was solved, first with Fidelity’s announcements last November, and now with indices that align with IOSCO principles being available through the Nasdaq, there’s going to be a rush to produce all manner of financial instruments, which the institutional users have been asking for, for almost three years now. The LX program was born out of a need for clear and transparent price discovery of liquid cryptographic assets and is a bigger need today then it was back in 2015 when we started this program.”