Ava Labs, a company established by Cornell computer experts, has played a pivotal role in the launch of a transformative blockchain application for foreign exchange (FX) trading. This application, introduced by Citi in collaboration with the Monetary Authority of Singapore (MAS) as part of Project Guardian, marks a significant step towards modernizing FX trade execution and analysis.
The application is built on the Avalanche blockchain and is designed to simulate FX transactions, initially focusing on the USD/SGD spot FX pair, with potential expansion to other fiat currencies. It features real-time streaming of price quotes and secure record-keeping that aligns with current institutional practices and regulatory standards.
Key highlights of this blockchain initiative include:
- Evergreens, private Avalanche subnets, provide EVM compatibility and permissioned authentication tailored for institutional use.
- The Spruce Evergreen Subnet enables institutions like WisdomTree to explore on-chain finance.
- AvaCloud offers a controlled blockchain solution with high-level services for Web3 development.
John Wu from Ava Labs praised Avalanche's role in providing capital market solutions, highlighting its unique consensus protocol that allows for rapid transaction finalization. The use of Avalanche Warp Messaging (AWM) enhances interoperability within the network.
The new application also incorporates oracles for bilateral messaging and allows for real-time post-trade analysis on a single platform, optimizing trade lifecycle stages. Sam Hewson from Citi emphasized the alignment with institutional and regulatory requirements, while Shobhit Maini from Citi pointed out the benefits of optimizing all stages of the trade life cycle.
Collaborators on Project Guardian include T. Rowe Price Associates, Inc., and Fidelity International. Emma Pecenicic from Fidelity International noted the potential for distributed ledger technology to revolutionize financial systems and democratize access to financial services.
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