KEY TAKEAWAYS
- Nonco launches FX On-Chain on Avalanche to enhance institutional FX liquidity with stablecoins.
- The initiative automates conversions between local currency- and USD-backed stablecoins, improving global payment efficiency.
- Supported by VanEck and other investors, Nonco aims to redefine FX liquidity and boost stablecoin adoption.
- Avalanche’s infrastructure supports Nonco’s goal to modernize cross-border transactions with blockchain technology.
Nonco, a prominent institutional digital asset trading firm, has launched its FX On-Chain initiative on the Avalanche network. This move aims to bridge institutional foreign exchange (FX) liquidity with the expanding stablecoin market. Built on Avalanche’s C-Chain, the network’s liquidity hub, Nonco’s FX On-Chain protocol automates conversions between local currency- and USD-backed stablecoins, such as USDC, USDT, and AUSD. This automation is expected to facilitate faster and more cost-effective global payments, remittances, and cross-border transactions.
The initiative seeks to enhance stablecoin liquidity on-chain, creating a more efficient FX market for institutions and enterprises. Stablecoins, particularly USDT and USDC, have already achieved a market capitalization exceeding $200 billion. However, non-USD stablecoins, pegged to currencies like EUR, MXN, and BRL, remain underdeveloped due to limited local exchange liquidity and high conversion costs. FX On-Chain aims to address these challenges by connecting institutional FX liquidity providers with the Avalanche-based protocol, fostering a more robust on-chain market.
Institutional Support and Market Expansion
Nonco’s FX On-Chain initiative has garnered support from VanEck, a global leader in asset management, which has committed to investing in the project. VanEck’s CEO, Jan van Eck, expressed confidence in Nonco’s potential to lead in stablecoin-based FX markets. The initiative is also backed by Valor Capital, Hack VC, and Morgan Creek Digital, positioning Nonco to redefine institutional FX liquidity and accelerate stablecoin adoption across financial markets.
Avalanche will serve as the default network for Nonco’s FX On-Chain protocol. Known for its speed, low fees, and scalability, Avalanche has attracted numerous institutional builders and stablecoin issuers. Nonco plans to debut the protocol with the USDMXN trading pair, followed by USDBRL, EURUSD, and others, while onboarding additional liquidity providers.
Enhancing FX Liquidity with Blockchain Technology
Fernando Martinez, CEO of Nonco, highlighted the initiative’s role in addressing inefficiencies in stablecoin markets by integrating real FX markets with blockchain infrastructure. This integration allows businesses to transact in stablecoins with the same efficiency as traditional FX desks. Avalanche’s high-performance infrastructure and ecosystem of partners made it the ideal platform for launching FX On-Chain.
Nonco, recognized as a leading digital asset trading firm, provides liquidity to over 350 institutional counterparts, including ETFs, asset managers, and global payment companies. By combining blockchain technology with institutional-grade execution, Nonco aims to modernize global money movement and enhance the efficiency of cross-border transactions.
For more information, visit the official announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
Nonco has launched its FX On-Chain initiative on the Avalanche network, aiming to enhance institutional FX liquidity by integrating it with the stablecoin market.
Recent developments in stablecoin adoption reveal a significant increase in active wallets and stablecoin supply, reflecting growing usage in payments and remittances. This aligns with Nonco’s initiative, which seeks to leverage stablecoin liquidity to improve FX market efficiency.
As per insights from Tom Higgins, CEO of Gold-i, the convergence of crypto and FX liquidity is transforming cross-border transactions. This supports Nonco’s approach of integrating blockchain technology with FX liquidity to enhance transaction efficiency.
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