It was a really big sign for a major announcement related to Nasdaq blockchain projects that Avalanche, the blockchain platform known for its speed and low fees, threw out recently.
Both the crypto and traditional finance communities have taken note, as it could imply an important step towards combining decentralized finance with the mainstream market. So what is the real relationship between Avalanche and Nasdaq, and why should traders and investors be so interested?
Let's look at them in detail.
Why This Matters
Avalanche managed to position itself very fast as one of the most important blockchains thanks to its throughput of thousands of transactions per second with an almost immediate final confirmation. As of now, it is the preferred platform for the launch of the DeFi projects for speed and scalability concerns in this field.
However, with the evocation of potential cooperation with the Nasdaq, the leading financial market with a history of over a century, it would seem that the Avalanche is plotting to do something monumental. After a number of years of research, the stock exchange has moved to blockchain technology as a means of speeding up and facilitating security integrity in the trading process. If Avalanche were to collaborate with them, this would probably lead to faster implementation of blockchain solutions in the process of asset tokenization, exchanging transactions and real-time dissemination of market data.
What’s Nasdaq’s Blockchain Initiative?
Nasdaq’s initiative on blockchain is fundamentally about abolishing limitations in conventional financial instruments that work well with the help of the latest technological innovations - this includes setting up markets for digital assets, and creating easily accessible decentralized identity tools and trade processing via distributed ledgers.
The investment is resulting in the real offering of certain fundamental blockchain concepts such as privately-held markets for company shares and voting powered by blockchain. The association with such speed and scalable blockchains like Avalanche as a partner can considerably speed up the diffusion of such breakthroughs across the general public and possibilities for participation in capital markets can get more abundant and easier.
What This Could Mean for You.
In the case of an official relationship between Avalanche and Nasdaq, we could witness a number of thrilling developments ahead, such as:
Access to Markets in a More Convenient Way: Tokenizing assets is taking ownership of investments to another level where trading can happen at any time, even outside market hours and so the doors get open for more investors.
Trade Clearing Procedures Fast and Cheap: Use of the blockchain can lower the period one has to wait for the trade to be cleared as well as the fee involved in the process, and everything will be done in a more straightforward and transparent manner.
New Financial Products Emerged: It is possible to combine the DeFi strengths coming from the Avalanche ecosystem with Nasdaq’s infrastructure to co-create totally new investment options integrating crypto and traditional finance.
More Trust and Usage: By collaborating with Nasdaq, the image of Avalanche will receive a huge boost thereby more users and projects will be attracted to.