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first_img The New York Stock Exchange selected Avalanche to build a tokenized securities platform, experts say the value capture of AVAX remains to be observed

This week, the New York Stock Exchange chose Avalanche to provide infrastructure for its upcoming tokenized securities platform. On Monday, Ava Labs announced that Avalanche will serve as the "core ledger technology" for the tokenized securities platform being developed by the NYSE's parent company, Intercontinental Exchange. The product is designed to support 24/7 trading, clearing, and settlement of tokenized securities, pending regulatory approval.Market maker GSR research analyst Carlos Guzman stated that this is a "significant victory for the project," as the NYSE's choice of its technology for settlement greatly enhances institutional credibility and validates the value that blockchain technology brings to traditional financial infrastructure through instant settlement and programmability. Luther Maday, North America head of crypto payment company Mercuryo, mentioned that this decision was made after approximately a year of testing on Avalanche, indicating that the network has passed tests for performance, reliability, and control.Experts also remind that providing infrastructure does not necessarily mean the long-term value of the AVAX token will rise. Guzman pointed out that while the NYSE will use Avalanche infrastructure for clearing and settlement, actual transactions will still occur off-chain, with related activities running on dedicated infrastructure rather than the public C-Chain that carries most of the network's activities. Misha Putiatin, founder of Symbiotic, stated that the main challenge for Avalanche is whether it can achieve "value capture" that is difficult for other blockchains. According to Decrypt data, AVAX rose 3.6% in the past 24 hours to $8.64.

first_img CertiK suggests that exchanges set a USD limit for hot wallets

The cybersecurity company CertiK recommends that cryptocurrency exchanges set a hard dollar limit on hot wallet holdings, rather than relying solely on cold storage ratios to measure security. This recommendation comes at a time when several exchanges have recently disclosed their cold wallet holdings ratios to reassure customers, following a record hack of Binance's hot wallet. Gate reports that 88.26% of its total assets are stored in cold storage, while Coinbase states that over 99% of customer assets are kept offline.The CertiK research team told Cointelegraph that cold storage is an effective indicator of online risk exposure, but it is not an independent security rating. Currently, South Korea requires crypto service providers to store at least 80% of the value of customer crypto assets in cold storage, Singapore's guidelines require at least 90%, Japan's framework requires at least 95%, and the benchmark for licensed crypto trading platforms in Hong Kong is 98%. CertiK points out that higher levels of cold storage generally reduce online risk exposure, but at extremely high levels, the returns diminish, and a rigid storage ratio may slow down withdrawals, force hasty transfers, and concentrate risks in the key management system.CertiK suggests that exchanges set hot wallet limits for each asset and blockchain based on the most stringent of three restrictions: the percentage of customer liabilities, estimated withdrawal demand, and an absolute loss limit based on the exchange's financial resources and recovery capabilities. Additionally, Binance stated last week that it has replenished about 98% of the affected tokens after the hack and absorbed the losses itself, with the remaining tokens having lower liquidity and longer acquisition times. Elliptic reported that hackers linked to North Korea laundered money by issuing memecoins, transferring about $430,000 through six newly issued tokens on NEAR.
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