Key highlights:
- Nonco introduces FX On-Chain on Avalanche, automating currency swaps between USD- and non-USD-backed stablecoins.
- Institutional liquidity providers and bank integrations aim to reduce conversion costs and improve transaction speed.
- VanEck invests in Nonco to support the development of stablecoin-based FX infrastructure.
Institutional FX meets blockchain in new stablecoin initiative
Digital asset trading firm Nonco has unveiled its new FX On-Chain protocol on the Avalanche blockchain, marking an effort to integrate traditional foreign exchange (FX) liquidity into blockchain-based financial infrastructure. The protocol enables direct conversion between USD-backed stablecoins, such as USDC and USDT, and non-USD stablecoins tied to currencies like the euro, Brazilian real, and Mexican peso.
FX On-Chain is built on Avalanche’s C-Chain, a hub of liquidity for decentralized applications. The system automates the process of converting between local and USD-pegged stablecoins, with a focus on improving the efficiency of global payments, cross-border remittances, and multi-currency settlements.
Despite stablecoins like USDC and USDT surpassing $200 billion in combined market capitalization, Nonco notes that stablecoins pegged to non-USD currencies remain underused due to fragmented liquidity and operational barriers. The new protocol aims to close this gap by leveraging institutional FX providers, offering more competitive spreads and faster settlement compared to automated market maker (AMM) models.
The FX On-Chain protocol introduces several features aimed at aligning blockchain-based transactions with traditional financial standards. It utilizes a Request-for-Quote (RFQ) system to deliver institutional-grade pricing, offering rates and spreads that closely reflect those in off-chain FX markets. Trades are settled atomically on-chain, which helps minimize counterparty credit risk, particularly in complex multi-currency transactions. The protocol also includes direct integrations with regulated banks and stablecoin issuers, facilitating smoother transitions between traditional and digital finance environments. Additionally, Avalanche’s infrastructure supports extended trading hours and enables rapid settlement, contributing to a more seamless transaction experience.
“FX On-Chain represents a step-change in bringing institutional FX liquidity to blockchain-based markets. Nonco’s expertise in institutional trading and its high-quality network of partners and customers, combined with Avalanche’s high-performance infrastructure, marks a major step toward expanding stablecoin-based FX markets and capabilities–something the whole industry has been waiting to see.”
—Morgan Krupetsky, Head of Institutions & Capital Markets at Ava Labs
VanEck backs stablecoin FX venture
Asset management firm VanEck has committed to investing in Nonco, reflecting growing institutional interest in blockchain-based FX tools. VanEck CEO Jan van Eck said the firm sees long-term potential in Nonco’s focus on merging stablecoin infrastructure with institutional-grade FX capabilities.
Nonco has also attracted prior investment from firms including Valor Capital, Hack VC, and Morgan Creek Digital.
According to Nonco CEO Fernando Martinez, Avalanche was chosen for its speed, low fees, and compatibility with Ethereum-based tools: “FX On-Chain solves a key inefficiency in stablecoin markets: the lack of institutional FX liquidity. Avalanche offers the infrastructure we need to execute at scale.”
The bottom line
With its FX On-Chain protocol, Nonco is looking to make stablecoins more functional for real-world financial use cases by bringing traditional FX mechanics onto the blockchain. Backed by major players like VanEck and operating on Avalanche’s fast, scalable infrastructure, the platform is positioning itself as a new standard in digital FX. The protocol will initially support USDMXN pairs, with plans to expand into EURUSD, USDBRL, and more in the near future.
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