Financial Blockchain & Fintech startup Validareum is tackling Ops Risk in cryptocurrencies and digital assets with data solutions to fix the digital asset class reference data gap

New York City, 9 February 2018

Fintech blockchain start-up Validareum has analysed thousands of digital assets including cryptocurrencies and token with the objective to test fit of the available data for asset onboarding, trading, risk management and processing at hedge funds, banks and asset managers.

Already the inital findings brought to light, that the new asset class, the digital asset class, is riskier from operational risk perspective then any other asset. Big issues already start at the asset identification process and continue through the front-to-back process. A true and especially professional mass adoption will be only able to take off and scale, if the current hurdles are overcome.

What is the roots of digital asset class risks, what are the findings and what are solutions to mitigate these risks ?


Findings first:

- over 6% (yes, six percent !) of the digital assets have identical codes - already !

- mostly 3 digit alphanumeric codes used - so very limited amount of possible codes available. So the nightmare gets worse from here by the day

- hundreds of digital exchanges are already active based on different data sets and data sources. Now add the amount of virtual wallet providers - so whats the chance for problems ?

- ICOs/ITOs operate outside of a single national numbering agency region - as theyre global

- no ISO norms in place for cryptocurrencies

- exchanges operate on different codes - trading pairs mount into thousands - all again based on no norm and no global identifier

This leads to the conclusion, that Ops Risk is way higher - unless you use a reference data standard.



Root of the issues include:


- lack of norms and standards

- ICO/ITOs just create their own codes, without thinking about data management impacts of the capital markets. They go mainly by how the code sounds.

- lack of regulation and global norms


Now what are possible solutions ?


- Use of an identifier that supports scalability into billions of assets

- independent data provider with financial services experience

- central identifier agency - operating globally - and distributing the data sets as standard to the financial services industry

- UDAID(TM) the unique digital asset identifier is the first identifier, which offers digital asset class reference data for asset identification as well as trading pairs

Now its up the financial industry, regulators and the blockchain industry to start using the standard in order to reduce the Ops Risks closer to zero.


Validareum Inc. is a privately held Delaware corporation, headquartered in New York City, globally operating – set up by fintech veterans and capital market professionals to serve sell-side and buy-side clients as well as the blockchain economy & community.

#Validareum #UDAID #Blockchain #EmpoweringFinancialBlockchain

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