Goldman Sachs has reportedly been attempting to formulate a classification system in order to enforce an order on the expansion of the crypto market, according to a report on CNBC.
Praising the Technology
In a joint effort with the global index provider MSCI and the crypto data firm Coin Metrics, the investment bank is set to release a data service that will help institutional investors understand the new asset class of digital coins and tokens by allowing them to classify hundreds of digital coins and tokens. The executives from those three firms have shared their views with the media.
Anne Marie Darling, head of the client strategy for Goldman’s Marquee platform, said in an interview:
“The digital asset ecosystem has really expanded over the last couple of years. We’re trying to create a framework for the digital asset ecosystem that our clients can understand because they increasingly need to think about performance tracking and risk management in digital assets.”
In the wake of the pandemic, crypto assets went to reach a value of $3 trillion by last year before they started to contract as interest rates were raised by the Federal Reserve. That bear situation still continues, but many services are in development.
Datonomy is an innovative new service from Goldman Sachs that uses the word taxonomy as a play on the word taxonomy, a branch of science dedicated to naming and classifying the natural world. It is available as a subscription-based data feed or as a digital storefront for institutional investors called Marquee.
Considering how digital assets are used and the way these assets are classified, Darling said the three companies had created a class system, a sector system, and a sub-sector system.
As a result of this, money managers at hedge funds and asset management companies will be able to think about crypto in a much more granular manner, much like how they can discuss the stock market by sectors, such as finance or technology, or themes, such as growth stocks versus value stocks, in the same manner, that they can discuss equities.
There are several ways in which users can use the data feed to help do research and analysis, as well as benchmark performances, manage portfolios or create investment products using sectors such as decentralized finance, metaverse, smart contract platforms, or value transfer coins.
The new service from Goldman Sachs in partnership with crypto industry players shows the technology is being accepted by traditional players.