In a bid to standardize the global crypto industry along the lines of the broader financial industry, Goldman Sachs has partnered with global index provider MSCI Inc. and crypto data firm Coin Metrics to develop a data service.
The new data service has been named Datonomy. It will seek to classify hundreds of digital assets that are traded on the market. The division will put digital assets into different classes, sectors, sub-sectors, depending on their utility and how they are used.
It is meant to give institutional investors a granular view of occurrences in the crypto market, allowing hedge funds and portfolio managers to analyze emerging assets better. Market participants can use the service to track trends in different segments of crypto, including smart contracts and decentralized finance, and screen various other digital assets. The data feed will also allow portfolio managers to create investment products and themes based on each of the segments.
Crypto assets have undergone continuous evolution since their introduction in 2009. Their value exploded during the pandemic, with the total market cap touching $3 trillion last year. The market only shrunk a little due to Fed-fueled interest rate hikes, which sucked liquidity out of the system. The investment and banking giant is trying to help institutional investors keep up in this scenario.
The framework should be useful because digital assets require constant tracking of performance and proactive risk management, according to Anne Marie Darling, head of client strategy for Goldman’s Marquee platform.
“Given our commitment to providing developer services, and as a trusted data analytics provider to our institutional clients, creating reliable data services for the emerging digital asset community is a strategic focus and natural extension to our existing business,” Darling added.
MSCI will be the sole administrator of the new crypto classification system, Datonomy.
