Nasdaq, the world’s second-largest stock exchange, had begun live listings of two cryptocurrency price indices from United Statesblockchain and crypto market data company Brave New Coin (BNC). According to a February 26 press release from Brave New Coin, the move comes ahead of the company’s plans to launch a separate index tracking the price of Ripple (XRP).
Nasdaq announced the launch of the two new indices tracking cryptocurrency prices on February 12, saying that they will open up new data for clients using Nasdaq’s Global Index Data Service (GIDS).
“The LX [Liquid Index] 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,” Fran Strajnar, the CEO of Brave New Coin said.
The company is in the final stages of producing its Ripple Liquid Index (RLX) and is working with a range of market participants to create custom basket indices, it said in the release. On February 26, XRP was listed on Coinbase Pro, which many see as a form of institutional endorsement for the asset.
Coinbase Pro is a leading global exchange that serves high-end traders and investors, which is why the entire crypto industry welcomed the move as it could bring much-needed recognition to the space. Currently, the exchange isn’t part of the constituents of the global price of XRP but could become part of the RLX if given enough trading volume.
“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 3 years now”, added Strajnar.