In an interesting update, the Nasdaq has begun live listings of two cryptocurrency price indices from United States blockchain and crypto market data company Brave New Coin (BNC), the latter confirmed in a post on Feb. 26.
Originally announced earlier this month, the integration of BNC’s Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) will open up new data for clients using Nasdaq’s Global Index Data Service (GIDS).
The move comes ahead of BNC’s plans to launch a separate index tracking the price of Ripple (XRP). The token launched on U.S. cryptocurrency exchange Coinbase Pro Tuesday, but it remains unknown whether Nasdaq will host the index, which is in the final stages of development.
“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,” BNC CEO Fran Strajnar commented in the post.
As we see the cryptocurrency landscape begin to shift, we see the markets coming closer and closer together. This is a good signal that governments, investors, finance and the general public will see not only more stories on this front but also get more exposure to this type of technology. As with any new technology, the more exposure we get, the higher the comfort level. As comfort levels increase, we will see less fear of adoption and more excitement, perhaps even more clamoring for adoption. Two specific types of crypto projects, stablecoins and security tokens, presents some powerful opportunities to speed adoption.
A crypto token that passes the Howey Test is deemed a security token. These usually derive their value from an external, tradable asset. Because the tokens are deemed a security, they are subject to federal securities and regulations. If the ICO doesn’t follow the regulations, then they could be subject to penalties.
However, if all the regulations are properly met, then these tokens have immensely powerful use-cases.
“Stable coin” is a term used in cryptocurrency to describe cryptocurrencies meant to hold stable values. For example, Tether (USDT) is a blockchain based asset meant to trade for $1 USD. Tether is a “price-stable cryptocurrency” that is “pegged” to the U.S. dollar.
There are a number of stable coins in circulation today, and a number more have been attempted in the past (with varying degrees of success).
With all of the various corporate deals, laws and regulations helping to normalize not only trading but of how these tools are implemented in the marketplace at large, these types of announcements and pairings of traditional finance and the crypto world can only hasten the diffusion of this technology into the public.