Goldman Sachs joins forces with Coin Metrics to develop a new crypto classification system
By categorizing digital currencies based on their principal application and underlying protocol, Goldman Sachs is creating a system meant to standardize the crypto assets market.
The Wall Street giant said in a statement that it would introduce the new crypto categorization system datonomy in collaboration with the crypto intelligence platform Coin Metrics and the global index provider MSCI.
The system has a three-tiered hierarchical structure, with the Class level describing the overall function of assets, the Sector level focusing on broad specializations of digital currencies, and the Sub-sector level categorizing assets within the Sector level according to their specialized product, service, or function.
According to Goldman Sachs, the new data service may assist investors, service providers, academics, and developers track and comprehending the cryptocurrency market.
In addition to assisting users in analyzing the possible risks and rewards of investments, the framework intends to aid in the creation of new products.
To better identify their risk profile and understand their returns, “market participants require assistance traversing the world of digital assets and arranging these assets into categories.” As the digital assets market grows, Datonomy has been intended to address this need and may serve as the foundation for portfolio management, reporting, benchmarking, research, and analysis.”
According to Goldman Sachs, datonomy may be licensed for applications such as examining and evaluating portfolio performance.
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