Institutionalize Crypto: Big Four Analytics Tools May Lure in Traditional Investors

Published on by Cointele | Published on

While some individuals in the crypto community may cringe at the thought, recent findings from Big Four firm KPMG explain that institutionalization is needed now more than ever in order for cryptocurrencies to meet their full potential.

"We are seeing both retail investors and institutional investors with crypto showing up on their balance sheets," Ghosh said.

While curiosity in crypto and digital assets from institutions has been brewing over the past year or so, the crypto market has especially become of recent interest.

New tools focused on data analyticsAs 2020 may turn out to be a crucial year for institutional interest in the crypto market, Big Four firms have been ramping up their management offerings to accommodate their institutional clientele.

Tools that use data analytics to address security, regulatory compliance and privacy around crypto and digital assets are particularly important for institutional investors and fintech companies.

Sam Wyner, the director and co-lead of the crypto asset services team at KPMG, told Cointelegraph that Chain Fusion was specifically designed to solve data problems faced by traditional financial services companies entering the crypto space: "Data challenges are much more complex in the crypto and digital asset world, as most organizations - whether they are custodians or exchanges - have lots of systems and information." He added that "All of that data is connected in different ways, making it difficult to put that data together clearly and make sense of it."

"There could be fiat transactions that need to go through multiple jurisdictions, or there could be a number of on-chain transactions. There could also be transactions going through different payment providers in various currencies. There is a lot of different information containing important analytics that traditional organizations require to safely and properly operate in the crypto world."

Not just a big boys gameAlthough the Big Four firms have been ramping up their crypto and digital asset management tools to accommodate institutional growth, smaller companies continue to play a prominent role.

While it may be difficult to determine which solutions will reign supreme, it's clear that institutional investors and fintech companies now require solutions to help manage their crypto and digital assets.

"Keeping control of the assets and avoiding misuse of the assets is probably at the top of a list of things that these organizations are exploring. Despite those fears, we're seeing a big increase in careful consideration of this space by big financial institutions, and they're looking for ways to add product to their portfolios and to manage thoughtfully the risks attached."