US fintech Cloudwall has adopted Wilshire’s digital asset taxonomy system (DATS) as part of its Cloudwall Serenity platform, a digital asset risk management system, to help clients to navigate volatility and mitigate risk.
Wilshire is a London-based software company that provides advisory services and solutions, financial analytics and indexes to financial institutions.
The integration will classify and group more than 1,000 digital assets, which will help investors understand market, liquidity, credit, operational and other risks, both at the level of individual assets and whole sectors.
DATS enables the development of systems like Cloudwall Serenity to model and visualise risk, says Wilshire.
Commenting on the mandate, Mark Makepeace, CEO of Wilshire, says: “We are delighted that Cloudwall recognised the strength of DATS and has implemented it into their system to further help the industry understand the risks and opportunities of the digital assets market.
“The rigorous approach to research and classification makes DATS the market standard for institutional investors, who need confidence in a rules-based taxonomy to conduct their research and make risk-adjusted asset allocation decisions.”
Kyle Downey, CEO of Cloudwall, comments, “Risk systems depend on very high-quality reference data to help properly identify the assets in a portfolio and to aggregate exposures in a meaningful way. A robust sector taxonomy is a key piece of the puzzle: it helps recognise similarities between digital assets which lead to correlated returns, and lets investors view risks at various levels like sectors, sub-sectors and industries.”
Downey adds: “DATS provides the leading solution for this problem in digital assets, and we are excited to make their comprehensive taxonomy available as part of Serenity.”
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