T. Rowe Price, WisdomTree join Avalanche subnet for forex testing
Financial market firms T. Rowe Price Associates, WisdomTree, Wellington Management, and Cumberland have joined an Avalanche (AVAX) subnet to test the idea of blockchain-based foreign exchange, according to an announcement from the Avalanche team. The new subnet is called “Spruce,” and is part of Avalanche’s Evergreen Subnet ecosystem.
Following last week’s Avalanche Evergreen announcement, today marks the launch of the Spruce Subnet!Institutional partners including @TRowePrice, @WisdomTreeFunds, @Wellington_Mgmt & @CumberlandSays will use Spruce to test public blockchain applications. https://t.co/1KLzxcUCSB pic.twitter.com/xvaUmKO3BV
According to the announcement, institutions will initially use “valueless tokens” on Spruce to ensure they can conduct foreign exchange, or forex, transactions without losing capital. Interest-rate swaps will also be tested early on. Over the long run, successful tests will allow these firms to experiment with further attempts at blockchain settlement, including “the exploration of tokenized equity and credit issuance, trading, and fund management.”
The announcement said that Spruce offers compliance features to help keep institutions within the parameters of the law. Firms that want to use it must first pass Know Your Customer (KYC) verifications, and once they complete this process, they receive non-transferable tokens, or NTTs, identifying them on the network. Their wallet addresses are also whitelisted “at the chain-level” after verification.
Will Peck, head of digital assets at WisdomTree, said that he believes Spruce will be an important step in bringing greater efficiency to traditional financial transactions:
On April 6, Avalanche announced the launch of the “Evergreen” subnet protocol,
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