A group of Wall Street giants will test Avalanche to explore if the blockchain can be used for financial transactions in a more efficient way.
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According to a press release published on Wednesday, financial giants T. Rowe Price Associates, Cumberland, WisdomTree and Wellington Management Group will experiment cash settlements on the blockchain with Spruce, a testnet for on-chain trade execution and settlement.
Blue Macellari, Head of Digital Assets Strategy at T. Rowe Price, told Bloomberg the experiment is an "opportunity for us to really begin to explore [...] in a super low-risk environment where there's no capital at risk." She added:
"DeFi, as it currently exists, there are a lot of obstacles to institutional participation, including compliance."
Ava Labs says institutional partners will use Spruce to execute foreign exchange and interest rate swaps, with other areas in active research and development. Although the timeframe of the initiative wasn't revealed, the firm believes that institutions will be key in providing ongoing feedback about Subnet architecture.
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