FTSE Russell, one of the world’s leading index providers, has formed a strategic partnership with blockchain data infrastructure company SonarX to create a new crypto index. This collaboration aims to enhance FTSE Russell’s offerings by integrating blockchain data from over 100 different blockchains into their financial indexes. The data included will cover various metrics such as network fundamentals, token supply, staking information, and decentralized finance (DeFi) statistics.
This partnership is part of an ongoing effort to bridge the gap between traditional financial markets and the rapidly growing world of digital assets. With institutional demand for exposure to cryptocurrencies increasing, FTSE Russell plans to use SonarX’s data to design indices tailored for institutional investors who are looking to gain exposure to digital assets.
Based in London, FTSE Russell is well-known for its global financial indices, with the FTSE 100 being its flagship index, tracking the 100 largest companies in the UK by market capitalization. FTSE Russell’s move to incorporate blockchain data into its indexing products highlights the growing integration of digital assets into mainstream financial systems.
Indexes are essential tools for financial markets as they provide benchmarks for tracking market performance or specific asset classes. They offer investors standardized metrics to evaluate growth and make informed investment decisions. According to Jesse Bornstein, Global Head of Business Development at SonarX, “Indices are the cornerstone of efficient financial markets, and high-quality data is the foundation on which they are built.”
By merging blockchain data with financial indexing, FTSE Russell is not only expanding its product offerings but also helping to make the digital asset market more accessible to investors. This partnership underscores how traditional financial institutions are adapting to the innovations introduced by blockchain technology.
Decentralized finance (DeFi), which relies on blockchain to offer financial services without intermediaries like banks, is an area that is rapidly evolving, and the new index is expected to provide investors with an easier way to engage with these emerging markets. Through this collaboration, FTSE Russell and SonarX are playing a crucial role in further integrating blockchain into the broader global financial ecosystem, thus opening up new investment opportunities in the digital economy.
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