Ava Labs’ John Nahas said the collaboration with the NYSE shows institutions moving past pilots toward purpose-built onchain market infrastructure.

Traditional finance is moving past one-size-fits-all blockchains, according to John Nahas, chief business officer at Ava Labs, the company behind the Avalanche network.

Nahas told Cointelegraph that the planned NYSE-affiliated tokenized securities platform, which will use Avalanche technology for clearing and settlement, illustrates that financial institutions want more control over how their blockchains operate.

“Capital markets need reliable performance and predictable cost settlement, certainty and control over the network and its participants,” he said. “It’s really important for this chain to be purpose built for the needs of NYSE.”

Nahas argued that the crypto industry’s preference for general-purpose blockchains and its reluctance to adapt to the compliance rules financial institutions face have slowed adoption.

“Crypto always wants to put the crypto part front and center,” Nahas said. He sees a shift toward blockchains designed for specific use cases. “I look at this as the end of the general purpose era,” he said.

The NYSE move, announced on Monday, comes as more companies object to third parties tokenizing their shares for trading on OKXICE, a separate venue proposed by crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE). OKXICE listed 67 companies that had objected as of Nov. 5, including Apple, Amazon, Meta and Tesla.

Nahas put the pushback down partly to a lack of understanding among incumbents, who he said see crypto as a speculative “wild west.” He said a “wholesale change” to market infrastructure built around institutions’ needs would make the potential efficiency gains clearer and expected objecting companies would “come around.”

Source link