By
Steve Muchoki
April 17th, 2024
Stock exchange operator Nasdaq has fulfilled its promise adding one more cryptocurrency index – this time for the world’s third-largest cryptocurrency, XRP.
Nasdaq announced Monday that, through its partnership with New Zealand-based blockchain data and research firm Brave New Coin, it will offer “real-time” index information for XRP starting May 1. BNC’s new XRPLX Liquid Index will allow users to track the price of the XRP token with far greater transparency than before.
They wrote:
“The XRP Liquid Index (XRPLX) is designed to provide a real-time spot or reference rate for the price of 1 XRP, quoted in USD, and based on the most liquid ends of their markets. The index is calculated using a methodology that has been independently audited against key IOSCO principles.
The XRPLX is the latest addition to Brave New Coin’s suite of Liquid Indices Program, which also includes the Bitcoin Liquid Index (BLX) and the Etheruem Liquid Index (ELX). The XRPLX has been calculated back to August 14, 2014.”
In their statement Brave New Coin wrote:
“The XRPLX sources data from only the most liquid exchanges by volume and order-book depth. Current constituent exchanges for the XRPLX include Bitfinex, Bitstamp, Poloniex and Kraken with Coinbase to be added in the next review.”
They’ve also added BNC has developed the XRP Liquid Index (XRPLX) to meet the marketplace requirement for a single, reliable and fair USD price for XRP — based on live real-world trading activity. The index is designed to report a market price at which liquidity could enter or exit an XRP position.
“The XRPLX captures a comprehensive, global sample of liquidity on the highest volume and quality exchanges. Ideal for settlements and accurate spot pricing, the XRPLX API includes 30 second Intraday pricing, End-of-Day OHLCV and Time & Volume-Weighted-Averages.”
Nasdaq already had partnered with Brave New Coin earlier this year, when it added indices for Bitcoin (BTC) and Ether (ETH) to its global data service. The BLX and ELX will provide users with “real-time” spot or reference rate” in relation to the price of 1 BTC and 1 ETH. The price will be quoted in USD and will be refreshed every thirty seconds.
Nasdaq Dipping Its Toes Deep Into the Crypto Ecosystem
Last month, Nasdaq also started offering two benchmark indices covering the top 200 cryptocurrencies by market capitalization. The first index is named CMC Crypto 200 Index (CMC200), which includes bitcoin, and covers more than 90 percent of the global cryptocurrency market.
The second, CMC Crypto 200 ex BTC Index (CMC200EX), tracks the market’s performance without the influence of bitcoin. The world’s largest cryptocurrency, bitcoin currently has just over 50 percent dominance of the total market capitalization.
Brave New Coin CEO Fran Strajnar said that the ‘LX’ family of BNC indices has had its methodology independently audited against key IOSCO (International Organisation of Securities Commissions) principles.
Nasdaq is also planning to launch Bitcoin futures trading on its exchange platform in the first half of 2019.
If it’s to believe VanEck’s director of digital asset strategy, Gabor Gurbacs, Nasdaq will launch “a regulated crypto 2.0 futures-type contract.”
According to Gurbacs, Nasdaq “ran a few extra miles working with the CFTC to bring about new standards for custody and surveillance,” which is why they have been taking longer to launch their bitcoin futures offering than their Chicago-based peers.
After the CME and CBOE, Nasdaq could become the third major U.S. exchange to launch bitcoin futures trading. This matters for bitcoin investors because the more reputable exchanges are launching digital currency-related financial products, the more institutional investors are likely to invest their funds in bitcoin and other digital currencies in the future.
* To learn more about XRP coin, Ripple Labs company and their innovative solutions, please check out our awesome “What is Ripple?” guide.