As per reports, the financial market platforms including T. Rowe Price Associates, WisdomTree, Wellington Management and Cumberland will test the concept of Blockchain-based foreign exchange, by joining an Avalanche subnet, stated Cointelegraph. Reportedly, the name of the new subnet is “Spruce”, which is already a part of Avalanche’s Evergreen Subnet ecosystem.
As reported by Cointelegraph, the platforms will be using “Valueless tokens” on Spurce for executing foreign exchange or forex transactions without the chance of losing any capital. It is expected that this step would allow the platform with the scope for“the exploration of tokenized equity and credit issuance, trading, and fund management.”
“We believe tokenization and blockchain will play an important role in financial services going forward. Avalanche Spruce provides an opportunity to further explore the potential efficiencies and benefits of on-chain trading and settlement with other financial institutions. We are looking forward to experimenting in this EVM-based testing environment,” Will Peck, head of digital assets, WisdomTree added further.
Furthermore, experts such as Ralf Kubli, Casper Foundation, commented that tokenization may help to prevent future financial crisis, Cointelegraph concluded.
(With insights from Cointelegraph)