Cumberland and WisdomTree start testing forex exchange on the Avalanche blockchain
The new subnet, Spruce, is part of the Evergreen Subnet ecosystem
![Cumberland and WisdomTree start testing forex exchange on the Avalanche blockchain](https://storage.getblock.net/source/1/mlNOzqRmAZvWQ6RIUcOUE3oVWlXYjxrl.webp)
13.04.2023 - 08:20
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3 min
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What’s new? Financial market firms Cumberland, WisdomTree, T.Rowe Price, and Wellington Management have joined one of Avalanche’s subnets to test blockchain-based currency exchange. The new subnet, Spruce, is part of the Evergreen Subnet ecosystem. Initially, institutions will use “valueless tokens” to test the ability to conduct currency transactions without losing capital. Interest rate swaps will also be tested initially.
What else does the blog say? In the long run, successful tests will allow companies to experiment with other blockchain-based settlement options, including issuing tokenized stocks and loans, trading, and fund management.
Spruce offers a compliance due diligence feature to help institutions stay within the law. Firms that want to use the subnet must go through a know your customer (KYC) procedure, and once it is completed, receive non-transferable tokens (NTTs) that identify them to the network. Also, once verified, their wallet addresses are whitelisted “at the chain level.”
According to Will Peck, Head of Digital Assets, WisdomTree, Spruce will be an important step in making traditional financial transactions more efficient and exploring the benefits of trading and settling on the blockchain. He believes that tokenization and blockchain will play an essential role in financial services in the future.
![Sberbank CEO predicts 10% growth of global GDP due to blockchain technologies](https://storage.getblock.net/source/1/EgECJY4eyD0MFQnul19A1IPY25tDPeRC.png)
Sberbank CEO predicts 10% growth of global GDP due to blockchain technologies
According to Herman Gref, this technology will have a huge impact on the development of the economy in the next 5-7 years
Avalanche announced the launch of the Evergreen subnet protocol on April 6. It allows institutions to create specialized blockchains with compliance features. At the time, a spokesperson for developer Ava Labs said that previous solutions, such as Corda and Hyperledger, lacked the interoperability needed for large institutions.
What is known about Avalanche? It is a decentralized, open-source platform for running DeFi applications, financial startups, trading, and other services. As of April 13, the native token AVAX ranks 16th in the cryptocurrency ranking by market capitalization with a figure of $6 billion and is trading at $18,47, having gained 2,04% overnight, according to Binance.
Avalanche uses three blockchains: C-chain, X-chain, and P-chain. The first is the center of the network’s DeFi community, hosting smart contracts and using the MetaMask crypto wallet. X-chain is the network for exchanging and sending funds, and P-chain is for AVAX mining and serves as a validator.
In March, C-chain failed, and some X-chain nodes were experiencing problems, causing network throughput to drop. The failures were due to bugs in the new software.
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