Pyth Network has introduced new price indexes for U.S. stocks and commodities. They are designed for trading products that operate around the clock, even when traditional exchanges are closed.
The company announced the launch on Wednesday. The new indexes are already used by Coinbase, Kraken, dYdX, and Nado. With their help, platforms can launch new markets and derivatives where prices need to be updated not only during stock exchange hours.
According to Pyth, the indexes are suitable for perpetual futures, tokenized assets, prediction markets, derivatives settlement, and exchange-traded product valuation. The main idea is to give the market a clear price reference even when platforms in the U.S. or Europe are not trading.
At the first stage, Pyth added stocks of major U.S. companies, including Nvidia, Tesla, Apple, Circle, and Strategy. The list also includes gold, silver, WTI and Brent oil.
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In addition, Pyth has started collaborating with MarketVector, an index provider for VanEck. Together, they are developing thematic futures indexes for stocks. Areas include artificial intelligence, the defense sector, technology, and the Chinese market.
For Pyth, this is another step toward institutional market data services. Earlier this year, Pyth also introduced a service for financial companies that allows them to distribute market data via blockchain and earn revenue from it.
Continuous Pricing for Tokenized Assets
Tokenized stocks and commodities are traded on crypto platforms almost 24/7. However, the underlying assets themselves still depend on the schedule of traditional exchanges.
At the same time, the assets themselves have not disappeared from traditional markets. Shares of Nvidia, Apple, and other U.S. companies are traded only during stock market hours. But the tokens linked to them on crypto platforms are available almost around the clock.
Because of this, market participants need price benchmarks even after the exchanges close. This is exactly what the new Pyth indexes are designed for—they continue to update outside of main trading sessions.
This creates a gap. For example, shares of Nvidia or Brent oil are traded on traditional platforms during certain hours. But if a tokenized asset is available 24/7, the platform still needs an up-to-date price for settlements, margin, and closing positions.
These indexes aim to solve that problem. They provide the market with a benchmark during periods when the main exchanges in New York or London are closed. For tokenized assets, this could become an important part of the infrastructure, especially if volumes continue to grow.
The market for tokenized RWAs excluding stablecoins. Source: RWA.xyz.
Interest in such instruments is growing along with the market for tokenized real-world assets. Currently, tokenized stocks and commodities stand out the most.
According to Binance Research, the tokenized stock sector grew by 422% over the year. This made it the fastest-growing segment among RWAs.
Tokenized precious metals also increased. Over the same period, the market grew by about 39%, with most of the movement occurring in the first months of the year.
Tokenized stocks, commodities, and real estate showed significant growth over the past year. Source: Binance Research.
