KPMG Partners with Coin Metrics to Enhance Digital Asset Services for Institutional Clients

‘Big four’ accounting firm, KPMG, is expanding its blockchain product suite following a partnership with a leading crypto market data service provider, Coin Metrics. According to the announcement on Oct 27, the strategic alliance is meant to enhance the delivery of reliable data insights to bring more institutional clients into public blockchains and crypto-assets.

Notably, the announcement coincides with an increased interest in crypto by traditional financial institutions. Going by the trends, big players like PayPal will soon require advanced product suites in the blockchain niche for auditing processes. The KPMG partnership with Coin Metrics will see both firms integrate their blockchain products to serve institutional clients’ growing demand.

KPMG’s ‘Chain Fusion,’ a digital asset oriented product designed for financial firms, was launched as recently as June 2020. This product is set for integration with Coin Metrics’ Farum and Atlas, both of which propose value to KPMG’s core operations. Farum will enable KPMG clients to efficiently monitor risks by identifying fee volatility, transaction reorganizations, and network attacks.

Atlas, on the other hand, proposes value in transaction audits; this comes in handy with issues such as capital tax reporting, a niche where KPMG is a veteran player. KPMG’s Cryptoasset Services co-lead, Sal Ternullo, said that,

“The integration of Coin Metrics’ Atlas and Farum products and KPMG Chain Fusion provides a trusted foundation for the adoption of digital assets … Farum represents a significant step forward for custodians and exchanges who are exposed to often, unmonitored blockchain network risks that may impact their businesses.”

As the crypto market continues to gain traction, it is becoming evident that audit functions are necessary for the space to thrive. Well, KPMG is not the only ‘big four’ that has made a debut in crypto; its peer competitors PWC, Ernest & Young, and Deloitte have also shown interest. In fact, PWC recently partnered with ChainSecurity while Ernest & Young launched its crypto tax service a few months ago.

Also Read: KPMG Reveals Blockchain-Based Climate Accounting Infrastructure (CAI) for Greenhouse Gas Tracking

Read Original/a>
Author: Edwin Munyui

Bitcoin to Follow the Same Trend as Amazon to Recover its All-Time Highs: Coin Shares

  • The ‘Big Bang’ of 2018 dwarfed by other asset bubbles
  • Bitcoin outperformed every other asset class
  • Why aren’t investment professionals allocating to BTC

The investment of the decade which recorded 9,000,000% gains is currently sitting at just around $7,100.

In the short term, Bitcoin is expected to experience a lot of pain ahead that would surely be mixed with its own dose of gains as well.

But as we reported, in the long term, a poll run by Mati Greenspan, founder of newsletter Quantum Economics found that a staggering 49.2%, nearly half of respondents believe that Bitcoin is going to climb to $1 million by the end of the next decade.

The Big Bang of 2018 Dwarfed by other Asset Bubbles

It all started at the end of 2013 when Bitcoin became a billion dollar market during a short-lived price run following the seizure of Mt. Gox and arrest of Ross Ulbricht.

In December 2017, BTC hit its peak at $20,000 while the crypto market cap nearly reached one trillion dollars, $835 billion, during the first week of January following a rapid run up in Ethereum, XRP and other altcoins as well.

This “big bang” was relatively large resulting in a 20x price increase in a year, but Meltem Demirors, Chief Investment Officer of Coin Share and Marty Stenson, Associate, who authored the 2019 Crypto Trends Report “the value created (and destroyed) is dwarfed by other asset bubbles.”

Bitcoin outperformed every other asset class

The world’s leading cryptocurrency is already the best performing asset of the decade with a whopping 9,000,000 percentage gains.

According to the digital asset management company Coin Shares, It took seven to seventeen years for Amazon to recover its all-time highs and Bitcoin is expected to “follow a similar trend.”

However, Comparatively, bitcoin has been a much volatile asset, “but on an absolute basis, it’s outperformed every other asset class over a comparable time scale.”

Why aren’t Investment Professionals Allocating to BTC?

As a recent report by Bank of America Securities stated, if you invested $1 in bitcoin at the beginning of the decade, it would now be worth over $90,000.

On the other hand, Demirors notes that more than half of all stocks underperform the risk-free rate (US Treasuries) and “many lose money.” Actually, less than 1% for stocks drive more than 75% of stock market returns, she added.

This is why “it’s odd to me that investment professionals aren’t allocating to bitcoin or a passive basket of crypto (which is still >70% bitcoin),” said Demirors.

She illustrates how ARK Invest, a fintech company made a small allocation, less than 1% to Grayscale Bitcoin Trust to their Innovation ETF in 2015 that was one of the best performing ETF of 2017.

But she notes, “This strategy requires conviction. Riding the trend on the way up is a risky proposition, given how volatile bitcoin is. Secular trends take time to develop, and cyclical volatility can be a major deterrent.”

But as we saw in the case of the dotcom bubble, a few like Amazon came out at the top as winners. As such, “investment decisions *today* should be shaped by our perspective on where the world is headed *tomorrow.*”

“I believe bitcoin is a massively important part of the future,” added Demirors.

Read Original/a>
Author: AnTy