Large institutional players in the US continued to show considerable interest in the fast-growing cryptocurrency space. One such institution is Goldman Sachs, which is partnering with MSCI and Coin Metrics to launch a cryptocurrency classification system.
Goldman Sachs working on a cryptocurrency classification system
Goldman Sachs, along with index provider MSCI and Coin Metrics, is looking to develop a cryptocurrency classification service aimed at institutional investors. The bank ofinvestment wants to help institutional investors understand the cryptocurrency space.
According to Anne Marie Darling, head of Marquee platform's client strategy, Goldman Sachs is creating a framework to make it easier for its clients to understand the digital asset space. This framework will allow clients to monitor the performance and risk management of digital assets.
Darling added: 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, coupled with more than 150 years of experience in financial markets, to help solve this problem for customers.
The service in question will be called Datonomy. By partnering with Coin Metrics, a cryptocurrency data company, Goldman Sachs will divide the cryptocurrency space into different classes, sectors and subsectors. Darling also said that money managers who operate in hedge funds and wealth management companies will begin to learn more about cryptocurrencies.
On the other hand, MSCI's global head of derivatives licensing and thematic indices said the index provider believes in consistency and standardization of digital asset classification. This classification would support investors' ability to value the market.
The cryptocurrency ranking system will also include a data feed to assist cryptocurrency traders in research and analysis. Additionally, the system will be used to check market trends, allowing investors to manage their portfolios or launch investment products that provide exposure to multiple sectors within the crypto space.
Coin Metrics CEO Tim Rice also praised the initiative saying it is significant for the entire industry. Rice said the system will be a future-proof way for investors to monitor and analyze digital assets.
Goldman Sachs has already taken several initiatives to support the cryptocurrency industry by allowing institutional clients to access crypto products. Despite the highly unregulated market, it is among the largest traditional financial institutions in the United States venturing into the cryptocurrency space.
MSCI launches digital asset indices
In a separate announcement, MSCI said it plans to market its digital asset indices. These indices will be launched in collaboration with Menai Financial Group and Compass Financial Technologies.
These indices will allow cryptocurrency traders to track the performance of the major cryptocurrencies by market capitalization. In addition, they will also include digital assets that use a proof-of-work algorithm and those linked to technology platforms that support smart contracts.
