Home Finance Goldman Sachs to unveil crypto-currency classification system: Here’s what it means

Goldman Sachs to unveil crypto-currency classification system: Here’s what it means

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US multinational investment bank and financial giant Goldman Sachs has said it will soon launch a crypto-currency classification system, Datanomy.

The big bank said that Datanomy is a tool that classifies coins and tokens based on how the respective crypto-currencies work. The system will help analyze the crypto-currency ecosystem and increase transparency of market movements, it added. Datanomy could be used for a variety of use cases, including portfolio performance review and evaluation and reporting, it added.

What is Goldman Sachs Datanomy?

The Wall Street bank stressed the need for a standardized framework for classifying crypto-currencies to make it easier for investors to understand the market. There is an increased need for performance monitoring and risk management in digital asset markets, it added. In an announcement, the major bank said the Datanomy project is being done in collaboration with MSCI and Coin Metrics. The new crypto-currency classification system will provide market participants with a consistent view of the market, it explained.

“Datonomy was designed to fill this gap as the digital asset market matures and can be used directly as a basis for portfolio management, reporting, benchmarking, research and analysis.”

Datanomy will allow investors to track trends in various sectors, such as smart contract platforms and decentralized finance (DeFi). Anne Marie Darling, an executive at Golman Sacs, said,

“Given our commitment to providing developer services, and as a trusted data analytics provider for our institutional clients, creating trusted data services for the emerging digital asset community is a strategic focus and a natural extension of our existing business.”

Crypto Footprint Expands

In recent times, Goldman Sachs has continued to expand its footprint in the emerging crypto-currency sector. Earlier this year, the Wall Street bank traded the first block of Bitcoin futures on Asian markets. Prior to that, the bank traded a bitcoin-related instrument with crypto bank Galaxy Digital. The deal made Goldman Sachs the first major U.S. bank to trade an over-the-counter crypto instrument.

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