Canary Capital’s New Venture
Canary Capital, a renowned digital asset-focused investment firm led by Steven McClurg, former co-founder of Valkyrie Funds, has hinted at plans to launch an exchange-traded fund (ETF) that will track the price of Axelar (AXL). The firm initiated this move by filing an S-1 with the Securities and Exchange Commission (SEC) on Wednesday. The firm is not new to this process as it has previously filed for several ETFs, some of which are currently pending approval from the Commission.
Why Axelar?
“Axelar boasts of one of the finest development teams in the blockchain. Most credible protocols work hand in hand with them on chain interoperability,” stated Steven McClurg, Canary Capital’s CEO. “AXL’s potential to become a top 20 token by market capitalization is not a matter of if, but when. This potential is the driving force behind our risk-taking.”
Axelar: The Cross-Chain Protocol
AXL is the native token of the Alexar Network. This network is a cross-chain protocol that establishes connections among other blockchains, thereby enabling decentralized and secure cross-chain transactions. Unlike several other interoperability solutions that rely on a limited group of validators, Axelar utilizes a proof-of-stake consensus model. This model allows anyone to participate in its network, as explained by Sergey Gorbunov, co-founder of Axelar, in an interview with CoinDesk.
Previous Integrations and New Appointments
The cross-chain protocol has caught the attention of other companies, resulting in several integrations. Some of these include J.P. Morgan’s Kinexys platform, Microsoft’s Azure marketplace, Uniswap and MetaMask. In addition, the protocol announced the appointment of Brian Brooks, former chief legal officer at Coinbase and Acting Comptroller of the Currency, to its newly established Institutional Advisory Board.
Gorbunov on Blockchain Adoption
Gorbunov noted that Brooks brings a deep understanding of how to ensure blockchain adoption by traditional finance. He further emphasized that Brooks recognizes the challenges asset issuers face and strongly believes in the essentials of decentralized interoperability in solving these issues.
The Future of Stablecoins and Tokenization
According to Gorbunov, stablecoins and tokenization are set to be the next big trends for institutions in the crypto world. He believes this will be driven by regulatory developments and efficiency gains. A forthcoming stablecoin bill could pave the way for more financial institutions to issue and incorporate stablecoins. Companies like PayPal, BlackRock, and Robinhood are already considering using them for settlement to reduce costs.
