FinNexus plans to build a platform of tokenized assets on the XRP blockchain
Crypto startup FinNexus is considering using XRP Ledger to build a tokenized asset platform that will launch in the last quarter of this year.
FinNexus, an open finance protocol designed to bridge different blockchains, announced in a Medium blog post that it plans to develop a tokenized asset platform on the XRP ledger. The company will launch a pilot project of the tokenized platform in the fourth quarter of this year.
The crypto firm plans to build three technical products: the Blockchain Interaction Protocol (BIP), an Asset Payment Protocol Cluster (PCAP), and an Asset Distribution Protocol (ADP).
[amazon box="B077NS1H17"]FinNexus will use the Ripple Ledger
To develop the BIP product, FinNexus will turn to the Wanchain (WAN) blockchain for more avenues to connect different blockchains. In the case of PCAP, the startup is looking at employing the XRP Ledger to potentially “connect different digital currencies, including Ripple and XRP.” According to the announcement, FinNexus wrote:
“We will use the XRP Ledger to issue tokenized assets that could be exchanged for stablecoins on XRP. And then we will make this feature part of the Asset Production Protocol and the Asset Trading Protocol.”
FinNexus' ultimate goal is to create a " fat protocol " framework that connects public blockchains and their layer-two solutions, such as exchanges, dexes, payment channels, and legacy financial systems, among others. The backbone of FinNexus is based on Wanchain's public blockchain protocol, but the company aims to expand and work with as many open blockchain protocols as possible. The firm states that "cooperation and partnership" are crucial to its pursuit of success. FinNexus will unveil more tokenized products in the second quarter of 2020, according to the announcement.
The startup plans to have its FNX token, based on Wanchain's WRC20 protocol. Listed on various exchanges when its initial convertible token offering (ICTO) ends in February. An ICTO is a variant of an initial coin offering (ICO). Although with some modifications to comply with various regulations, such as securities laws.
Possible effect of FinNexus and the planned platform of tokenized assets on XRP
The announcement to build a tokenized asset platform was part of FinNexus' 2020 roadmap. Which has been divided into three parts: business and ecosystem development, protocol and product development, and operations. If FinNexus plans to build a platform of tokenized assets on XRP Ledger are fulfilled. This will probably be good news for XRP, which is currently the third largest cryptocurrency by market capitalization. As a result, it can have a positive impact on the performance of Ripple solutions that actively use XRP.
According to data from Trading View, XRP is up 20 percent in year-to-date performance. Although it is down 11 percent in the last six months and 43 percent in the red in the past year. According to the statement, “2019 was the year of resurgence of digital assets in general”. 2020, if anything, will be the “banner year for the burgeoning DeFi (Decentralized Finance) sector,” the announcement said.
