BNY Is Changing The Game For Crypto Accounting

More details: Visit website

Headlines:

In the latest move by TradFi institutions pivoting to embrace the blockchain and tokenized asset space, the banking giant BNY has debuted a real-time reporting tool ( Digital Assets Data Insights ) in partnership with Blackrock. The fact that these two financial giants are collaborating on an on-chain valuation and reporting tool is set to have substantial effects on the crypto accounting and reporting conversation moving forward. Put simply, this tool will allow the posting of net-asset-value data directly on to select blockchains without relying on third-party accounting services. The involvement of on-chain money market fund, BUIDL , managed by Blackrock in addition to being the leading partner on this initiative, also highlights the growing importance of on-chain assets.

Benefits that have been discussed connected to this include 1) the ability of BNY to post NAV figures directly on chain, 2) enhanced credibility of tokenized funds thanks to increased transparency and real-time information, and 3) the ability of other products to benefit from more comprehensive suites of tools tailor made for tokenized information. The launch of the partnership also reinforces the rise of tokenized assets and other data, outside of traditionally decentralized instruments such as bitcoin and ether. While the project itself is still in early stages the implications of this real-time reporting and disclosure capability are significant in terms of allowing further maturation of tradeable products and services.

In addition the Digital Chamber of Commerce has also issued multiple whitepapers on the topic of proof-of-reserves, and although that practice continues to evolve the expectation is that some iteration of this concept will play a key role going forward. The efforts by BNY to enable more real-time valuation and (by extension) reporting and disclosure will only increase the appetite and interest in these ideas.

#news