KPMG Develops Crypto-Asset Management Tool for Crypto Asset Management Companies
In a bid to finally step into the cryptocurrency market, KPMG LLP on Monday announced it has launched KPMG Chain Fusion, a patent-pending suite of advanced analytics capabilities, built around cryptoasset data and technology products to allow financial services companies and fintechs offer cryptoasset services on an institutional scale.
The director and co-lead of the Big 4 auditor’s Cryptoasset Services, Sam Wyner, said his team has been working on the project for about a year and started building the actual suite of tools in February.
“It’s not unusual for a bank to have tens of systems … and crypto companies have a similar problem where for their blockchain-based systems, they’re fundamentally different, the infrastructure behind them is fundamentally different from what’s happening in traditional systems,” he said. “The same problem that happens is ‘how do you connect all your blockchain based systems to traditional ones, and do that in a way that the organization is trying to operate in?”
The tool would allow businesses in the crypto space to run broad-based analytics on data. This was tested by KMPG through multiple use case modules based on actual feedback from companies in the industry.
Wyner said it would ensure that data on a blockchain matches the information recorded on an entity’s books.
“If you know you control an address and you think you have one bitcoin on it and you look at the address on the public blockchain, do you have one bitcoin or are you running a fractional reserve?” he said.
Other challenges included finding ways of being able to pull data from databases, including blockchain information, and still be able to run queries.
“We developed it all in a way that we were able to incorporate different types of technology providers and market data and infrastructure providers,” Wyner said.
While Wyner wouldn’t admit the name KPMG and reputation will help companies become more comfortable stepping into cryptoasset management, he did say risk is not something new in the financial services industry. However, KPMG is more comfortable with process risk and control.
“At least in my career this is one of the first times I’ve really thought of something and carried it all the way to this point with the help of a lot of people on this team, it would never have been possible without the support of our team,” Wyner said. “It’s an exciting time, I’m excited to continue to speak about chain fusion with all of the companies.”
