The cryptocurrency space is quickly evolving with the rise of institutional platforms soon to be launched, including ICE’s Bakkt, Fidelity Digital Assets, and Nasdaq.
These will be top-tier, highly regulated platforms that require transparency, high-end security, sound technology, and accurate crypto indices produced from a reliable benchmark-setting process. One such company providing the latter is the US blockchain and crypto market data company, Brave New Coin (BNC).
As previously reported by IIB, BNC recently got 2 crypto indices, the Bitcoin and Ethereum Liquidity Indices (BLX and ELX) listed on Nasdaq’s platform, which hosts 4,000 global indices.
In addition to the BLX and ELX indices, BNC is currently in the final stages of production for their RLX (Ripple Liquid Index), which will be launching soon, according to a report by Brave New Coin.
Ripple Liquid Index [RLX] Launching Soon?
While the top 2 cryptocurrencies by market cap, Bitcoin and Ethereum’s Liquid Index (LX) Indices, are now listed on Nasdaq’s platform, Ripple (XRP), the 3rd-largest crypto by market cap, is fighting to claim its spot on Nasdaq’s platform.
As stated in the BNC report:
“BNC is in the final stages of producing the RLX (Ripple Liquid Index) and is working with a range of market participants to create custom basket indices. XRP was today listed on Coinbase Pro, which many view as a form of institutional endorsement for the asset as Coinbase Pro is a leading global exchange that serves high-end traders and investors.”
Following the XRP Coinbase Pro listing, BNC acknowledged the possibility of utilizing the financial data from Coinbase Pro to produce the Ripple Liquid Index in the near future. However, they did note that XRP trading volume on Coinbase Pro will have to reach their required levels before it can become apart of the RLX.
Importance of Liquidity Indices
According to the CEO of the company, Fran Strajnar, BNC indices are top of the line, with their methodology audited independently against key International Organisation of Securities Commissions [IOSCO] principles.
He further added that the cryptocurrency industry is still in its very early days and thus vulnerable to conflicts of interest in the benchmark-setting process, which is why BNC takes such a meticulous approach in establishing their indices.
In the BNC report, Strajnar was quoted saying:
“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.”
Do you agree that crypto is quickly being legitimized by the establishment of crypto Liquidity Indices that are being adopted by Nasdaq? Let us know what you think in the comment section below.
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