Nonco Launches FX On-Chain on Avalanche to Boost Institutional Stablecoin Liquidity

• Nonco’s goal is to make the foreign exchange market more operationally effective for businesses and institutions by increasing the amount of stablecoin liquidity.
• This initiative aims to bridge the gap between the expanding stablecoin market and the liquidity and activity of the institutional FX market.

The foreign exchange (FX) On-Chain initiative has been launched on the Avalanche network by Nonco, a leading institutional digital asset trading firm. This initiative aims to bridge the gap between the expanding stablecoin market and the liquidity and activity of the institutional FX market.

Built on Avalanche C-Chain, which serves as the liquidity center for the network, Nonco’s FX The On-Chain protocol is responsible for automating conversions between local currency- and USD-backed stablecoins, such as USDC, USDT, AUSD, and others. This makes it possible for worldwide payments, remittances, and cross-border transactions to be completed in a possibly more expedient and cost-effective manner. Nonco’s goal is to make the foreign exchange market more operationally effective for businesses and institutions by increasing the amount of stablecoin liquidity that is available on the blockchain.

Bringing Institutional-Grade FX Pricing & Liquidity On-Chain

Both USDT and USDC have market capitalizations that are more than $200 billion, indicating that stablecoins are already playing an important part in the global financial system. In spite of this, non-USD stablecoins, which are defined as those that are tied to currencies such as EUR, MXN, BRL, HKD, and so on, continue to be underdeveloped for a number of reasons. These reasons include insufficient and fragmented local exchange liquidity, operational frictions between conventional businesses and blockchain-based marketplaces, and expensive conversion rates.

In order to overcome these challenges, FX On-Chain strives to integrate established institutional FX liquidity providers with the Avalanche-based protocol in a way that is both simple and safe. This will allow for the formation of a more robust on-chain market.

A few of the key aspects are:

• Institutional liquidity provisioning: End-customers will be able to access foreign exchange liquidity equal to that of off-chain markets, but with quicker settlement times and longer trading hours. This is made possible via connecting with institutional incumbents.
• Targeted FX pricing: The RFQ-based approach, in conjunction with institutional-grade liquidity, will ensure that pricing and spreads are maintained in a manner that is more typical of conventional foreign exchange markets as opposed to options that are structured in the AMM fashion.
• Integrating directly with banks and stablecoin issuers: In order to encourage involvement from regulated financial institutions and significant stablecoin issuers, the system was developed by institutions only for the purpose of serving institutions.
• Execution and settlement on the blockchain: Foreign exchange deals will be resolved automically on the blockchain in order to simplify transactions involving several currencies and to mitigate counterparty credit risk.

Morgan Krupetsky, Head of Institutions & Capital Markets at Ava Labs stated:

“FX On-Chain represents a step-change in bringing institutional FX liquidity to blockchain-based markets. Nonco’s expertise in institutional trading and its high-quality network of partners and customers, combined with Avalanche’s high-performance infrastructure, marks a major step toward expanding stablecoin-based FX markets and capabilities–something the whole industry has been waiting to see.”

VanEck Invests in Nonco

Nonco has been able to gain a commitment for investment from VanEck, a worldwide leader in asset management and digital asset innovation. This indicates that VanEck has trust in the vision that Nonco has expressed. Since its inception, VanEck has been a strong proponent of stablecoins as a disruptive force in the realm of international payments and international transactions.

CEO Jan van Eck stated:

“Nonco has established itself as one of the leaders in providing liquidity for its corporate customers, and we believe they have the potential of becoming a leader in stablecoin-based FX markets.”

The FX On-Chain protocol developed by Nonco is positioned to redefine institutional foreign exchange liquidity and accelerate the adoption of stablecoins across both conventional and digital financial markets. Some of the investors that have previously supported the initiative include Valor Capital, Hack VC, Morgan Creek Digital, and others.

Avalanche As the Choice for Institutional Finance

When it comes to Nonco’s FX On-Chain protocol, Avalanche will be the default network. When it comes to the execution of their digital asset plans, Nonco joins the expanding list of institutions who are using Avalanche. Nonco is already the market leader in terms of stablecoin trading volumes. A increasing number of USD- and non-USD stablecoin issuers have been drawn to the network as a result of its EVM compatibility, speed, cheap fees, scalability, and customization capabilities. Institutional builders, users, investors, and infrastructure partners have also been drawn to the network.

Fernando Martinez, CEO of Nonco stated:

“FX On-Chain solves a key inefficiency in stablecoin markets: the lack of institutional FX liquidity. Integrating real FX markets with blockchain infrastructure enables businesses to transact in stablecoins with the same efficiency as traditional FX desks. Avalanche provides high-performance infrastructure tailor-made for institutional finance, and the ecosystem of partners building on the network made it the ideal place to launch.”

Almost immediately, the protocol will make its debut with USDMXN. Subsequently, it will rapidly grow to include USDBRL, EURUSD, and other prominent trading pairs, while simultaneously bringing on board more liquidity providers in a short period of time.

The premier digital asset trading company, Nonco, offers main risk liquidity to institutional counterparts. Nonco is widely recognized as a market leader. The operations of the company are divided into two primary verticals: markets and stables.

In the Markets division, Nonco collaborates with exchange-traded funds (ETFs), asset managers, brokers, trading companies, and aggregators to provide pricing that is consistent and competitive regardless of the market circumstances. In addition to providing extensive liquidity and streamlined execution, the company functions as a reliable counterparty.

Nonco provides assistance to fintech companies and Web3 platforms that are using stablecoins and local currencies for the purpose of facilitating international payments, remittances, and trade financing via its Nonco Stables business. Nonco is contributing to the modernization of the global money flow by coordinating the infrastructure of blockchain technology with institutional-grade execution.

Nonco gives its institutional counterparts the ability to trade against its balance sheet with complete assurance by using a combination of high-touch service and cutting-edge technology inside its operations. Nonco has established itself as one of the most prominent liquidity providers in the digital asset field, thanks to the unwavering support of industry veterans who have more than twenty years of expertise.

Today, Nonco provides services to more than 350 institutional counterparties, which include exchange-traded funds (ETFs) in the United States, liquid funds, top-tier cryptocurrency initiatives, and global payment organizations. It is generally acknowledged as a liquidity provider that institutions that operate in digital asset markets use as their primary source of liquidity.