Large institutional players in the US have continued to show notable interest in the fast-growing cryptocurrency space. One of these institutions is Goldman Sachs, partnering with MSCI and Coin Metrics to launch a crypto classification system.
Goldman Sachs working on a crypto classification system
Goldman Sachs, alongside MSCI index provider and Coin Metrics, is looking forward to developing a crypto classification service targeting institutional investors. The investment bank wants to support institutional investors in understanding the crypto space.
According to Anne Marie Darling, the head of the client strategy at the Marquee platform, Goldman Sachs was creating a framework that would make it easier for its clients to understand the digital asset space. This framework will allow these clients to track performance and risk management for digital assets.
The collaboration brings together MSCI’s expertise in critical decision support tools and services, Coin Metrics’ intelligence in the digital assets space, and Goldman Sachs innovative platforms paired with over 150 years of experience in financial markets to help solve this problem for clients.
The service in question will be known as Datonomy. By working with Coin Metrics, a crypto data firm, Goldman Sachs would divide the crypto space into different classes, sectors, and subsectors. Darling has also said that money managers based in hedge funds and asset management firms would start understanding more about cryptocurrency.
On the other hand, the global head of derivatives licensing and thematic indexes at MSCI mentioned that the index provider believes in consistency and standardization when classifying digital assets. This classification would support the ability of investors to evaluate the market.
The crypto classification system will also include a data feed to assist crypto traders with research and analysis. Moreover, the system will be used to check on the performance of the market while allowing investors to manage their portfolios or launch investment products providing exposure to multiple sectors within the crypto space.
The CEO of Coin Metrics, Tim Rice, also commended this initiative saying that it was significant for the entire industry. Rice opined that the system would be a future-proof way for investors to monitor and analyze digital assets.
Goldman Sachs has already made several initiatives to support the crypto sector by allowing institutional clients to access crypto products. Despite the highly unregulated market, it is among the largest traditional financial institutions in the US that are venturing into the crypto space.
MSCI launches digital asset indices
In a separate announcement, MSCI said it was releasing its digital asset indices in the market. These indices would be launched in partnership with Menai Financial Group and Compass Financial Technologies.
These indices will allow crypto traders to track the performance of the largest cryptocurrencies by market capitalization. Moreover, they will also comprise digital assets that use a proof-of-work algorithm and those linked with technology platforms supporting smart contracts.
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