- Nasdaq has announced it will add BNC’s XRP Liquid Index to its GID Service – effective from May 1st.
- 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
- BNC CEO Strajnar says the new asset class of cryptographic currencies and digital assets is global and has a diverse liquidity profile.
Nasdaq supports over 4,000 global indices and first partnered with Brave New Coin in February when it added BNC’s Bitcoin and Ethereum Liquidity Indexes (BLX and ELX). Now, BNC’s new XRPLX Liquid Index will allow users to track the price of the XRP token (commonly referred to as ‘Ripple’) with far greater transparency than before.
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.
Methodology and constituent exchange qualifiers
The XRPLX sources data from only the most liquid exchanges by volume and order-book depth. Given that exchanges are third-party organizations operating in a volatile and competitive marketplace, BNC reviews its constituent mix and index methodology every quarter to ensure the quality of its indices. Current constituent exchanges for the XRPLX include Bitfinex, Bitstamp, Poloniex and Kraken with Coinbase to be added in the next review.
A transparent liquidity profile
Brave New Coin has been tracking the crypto asset market and creating indices since early 2014 (with data for bitcoin going back to 2010). Since that time, its policy has been to focus on the accuracy and integrity of the data to establish a robust platform against which the market can not only conduct price discovery but also optimize value and manage risk.
The ‘LX’ family of BNC indices has had its methodology independently audited against key IOSCO (International Organisation of Securities Commissions) principles says Brave New Coin CEO Fran Strajnar. “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.”
Strajnar says the new asset class of cryptographic currencies and digital assets is global and has a diverse liquidity profile. To ensure transparency he says it is important to “consider the geographical and technological diversity of crypto” when calculating a global price index.
BNC’s Liquid Index (LX) indices are accurate and transparent. Drawing on qualitative and quantitative data sources, and factoring in the stability and quality of constituency, as well as volume, book depth, tick size and other factors from qualified market participants, the indices calculate a fair global value for the price of Bitcoin, Ethereum and now XRP, expressed in USD, every 30 seconds.
The XRP token
XRP is currently the third biggest crypto asset with a market cap of $12,399,708,239.
The XRP token offers banks and payment providers an on-demand option to source liquidity for cross-border payments. XRP transfers are fast with on-chain settlements completed in seconds. XRP can handle 1,500 transactions per second, and its creators Ripple Labs say XRP can scale to handle the same throughput as Visa.
Ripple offers a suite of tools for enterprise and banking solutions, collectively known as RippleNet; xCurrent, xRapid, and xVia. xRapid is a technology layer imbedded into the xCurrent network that allows sending and recipient parties to use the native XRP token to issue payments to one another with no middleman and no transaction costs.
About Brave New Coin
Brave New Coin, a Global leader in Cryptocurrency market information, is undertaking a private raise for expansion capital for the next 24 months to support global market growth to become the preferred provider of enterprise market data services.