As reported by smartereum.com, Coinbase Pro finally announced that it would be listing the third largest cryptocurrency per market capitalization, XRP. Since then, the entire cryptocurrency community has been talking about the possibility of Nasdaq listing XRP index the same way it listed Ethereum and Bitcoin indices. Keep in mind that Nasdaq is the second largest traditional exchange in the world. The Bitcoin and Ethereum indices the exchange just listed are powered by the blockchain company, Brave New Coin.
Brave New Coin Makes Room For XRP Index
The fact that Nasdaq listed Bitcoin and Ethereum indices is a big deal. Apart from the fact that it paves a way for greater adoption due to exposure, it also gives the industry a great deal of credibility from Wall Street. When BNC made the announcement yesterday, the company added that it was already in the final stage of development for the XRP liquid index. Since Nasdaq had already listed the top two indices, it would not be surprising for them to list the XRP index as well.
XRP (XRP) Price Today – XRP / USD
By listing a BTC and ETH index, Nasdaq may have indirectly propelled the SEC to soften their stance on cryptocurrencies and approve the Bitcoin ETF. This is because indices afford the industry more stability and transparency. The CEO of Brave New Coin said that indices are important because they help solve price disparity issues across countries. An index provides a composite price for different exchanges at a time. Integrated to the listing is the exchanges surveillance technology which helps people identify price manipulation attempts. When compared to Bitfinex’s high premium, the BLX index is relatively stable.
Ripple And XRP Are Making Waves
With this move, the SEC’s concerns about price disparity and manipulation would be addressed. If Nasdaq lists the upcoming XRP index, this would build investors trust in cryptocurrencies as well as promote transparency. According to Brave New Coin, the XRP index will be developed under the ticker RLX. Multiple exchange prices would be taken into account for the index. For now, BNC says that Coinbase Pro is not part of the participating exchanges. However, this may change in the future when liquidity increases.
Just like the ETH and BTC indexes, the RLX will meet up to regulatory compliance by the International Organization of Securities Commissions. This is also going to build trust among institutional investors. According to Brave New Coin, indices ensure stability. Their website states in a quote:
“BNC’s ‘Liquid Index’ (LX) indices are part qualitative and part quantitative, factoring in the stability and quality of constituency as well as the volume, book depth, tick size and other factors from the qualified market participants, to calculate a fair global value for the price of Bitcoin and Ethereum, expressed in USD, every 30 seconds.”
For a long time, Coinbase has refrained from listing the XRP token. The exchange suggested that it was hesitant to list the token because it didn’t want to get into trouble with regulators. Yesterday, the company finally announced that XRP would be available to traders on Coinbase Pro. Trading will be available in Australia, Canada, the United Kingdom, Singapore and other nations in Europe when there is enough liquidity.
Shortly after Coinbase made the announcement, the price of XRP surged by 12% as the market sentiment became positive. At the time of writing, XRP was trading at $0.319264. This shows that it is up by 1.16% against the USD and down by 1.32% against BTC. The trading volume over a 24 hour period is $726,065,675 and the market capitalization is $13,206,574,025.
Do you think Nasdaq will list the XRP index? Share your thoughts in the comment section.