The world’s second largest stock exchange Nasdaq will introduce an index based on RIpple’s XRP. According to the announcement made earlier this week, the XRP Liquid Index (XRPLX) index created in partnership with the New Zealand blockchain company Brave New Coin will be launched on May,1.
“The XRP Liquid Index (XRPLX) is designed to provide a real-time spot or reference rate for the price of 1 XRP, quoted in USD, and based on the most liquid ends of their markets,” the company says.
The methodology used to calculate the index will be regularly audited based on IOSCO principles.
In a separate statement, Brave New Coin team added that XRPLX would include rates from Bitfinex, Bitstamp, Poloniex and Kraken with Coinbase to be added later.
“The XRPLX sources data from only the most liquid exchanges by volume and order-book depth. Given that exchanges are third-party organizations operating in a volatile and competitive marketplace, BNC reviews its constituent mix and index methodology every quarter to ensure the quality of its indices,” the company explained.
The team says that he XRP Liquid Index (XRPLX) is designed to meet the market demand for a reliable USD price for XRP based real trading activity. It represents a global sample of liquidity obtained from the largest cryptocurrency exchanges.
The index is the latest addition to Brave New Coin’s Liquid Indices Program, which also includes Bitcoin Liquid Index (BLX) and the Etheruem Liquid Index (ELX). It will be available through Nasdaq Global Index Data ServiceSM (GIDS) platform and will allow to track XRP price movements starting from August 14, 2014.
The news served as a strong bullish catalyst for XRP. The coin jumped above $0.3000 barrier and touched $0.3175 high on Tuesday. At the time of writing, XRP/USD is changing hands at $0.3116. moving with a short-term bearish trend amid technical correction.
XRP/USD, 1-hour chart
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