About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Wilshire Forms Digital Asset Advisory Group

Subscribe to our newsletter

Global investment technology and advisory company Wilshire has launched the Wilshire Digital Asset Advisory Group, to be chaired by Blythe Masters, founding partner at Motive Partners and ex-CEO of Digital Asset Holdings. The advisory group aims to bring together the world’s top digital asset practitioners to capture their collective perspectives and insights.

The advisory group’s first initiative, working together with Digital Asset Research (DAR), a specialist provider of crypto data and research, is to develop a comprehensive methodology for the classification of digital assets, the Digital Asset Taxonomy System (DATS). The aim of DATS is to allow the industry to categorize, manage and research digital asset technologies by identifying common usage types and underlying technologies, as well as investment themes. This is an important building block for the institutional market to develop investment solutions based on rigorous research, according to the company.

“What’s been missing in digital assets is a taxonomy system that is acceptable to investors,” says Wilshire CEO Mark Makepeace. “In the equity market, investors predominantly use GICS (Global Industry Classification Standard) and the FTSE ICB (Industry Classification Benchmark). But they don’t have an equivalent way of looking at digital assets. What DATS does is group those assets in terms of both underlying technology and investment themes, helping both research and investors.”

With the exponential growth of digital assets, having a meaningful taxonomy has become an increasingly important market requirement. The DATS classification initially applies three main sectors:

  • digital currencies, spanning general purpose, privacy-preserving and stable and asset-backed tokens;
  • computational platforms, including application tokens, protocol interoperability, notarization and supply chain management, smart contract platforms and distributed computation and storage; and,
  • financial instruments, spanning staking instruments and decentralized autonomous organizations and security tokens.

In addition to the above taxonomy classification, DATS groups digital assets into themes and subthemes relating to various shared characteristics, for example Environmental, Social, and Governance (ESG), or Decentralised Finance (DeFi).

“For a lot of Wilshire’s customers, this is educational. Most current investors in the digital asset space are venture capital type funds, that’s where the market is today,” says Makepeace. “It will certainly evolve from here, but it will take time. And all of these tools will help provide more security, help give better access, and help educate.”

DATS will be available in January 2022 and the Advisory Group will review classification decisions on a quarterly basis. Changes will be formally communicated to the markets via a press release from Wilshire and DAR, to ensure full transparency.

“We’ll announce the membership in late January, and you’ll see a broad range of participants, including market infrastructure providers, custodians, institutional investors, brokers, ETF issuers, there’ll be a real mixture,” says Makepeace. “We want to work across the board, to make all of these things fit together. And the more we can work with all these players, the more we can – bit by bit – address the issues surrounding digital assets.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: How AI can help trading venues ease the burden of post-Brexit MiFID II data continuity checks

Date: 6 October 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Brexit has brought a number of additional challenges to trading venues, not least a new layer of complexity when fulfilling Markets in Financial Instruments Directive II (MiFID II) transparency requirements. This has been caused by ESMA increasing the data continuity...

BLOG

The Current and Future Landscape of Real-Time Enterprise Market Data Distribution

Distributing real-time market data across the enterprise is a complex proposition, with many moving parts. Banks and other financial institutions spend vast sums to ensure that the correct market data, the lifeblood of their trading activities, is sourced, normalised, controlled and distributed out to end users and applications in the timeliest manner, with minimal downtime....

EVENT

Data Management Summit London

Now in its 13th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...