Crypto Classification Seeks to Make Industry More Welcoming to TradFi Participants
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- 08 Feb 2023
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Cryptocurrency data provider CoinGecko and 21.co, the parent firm of investment product provider 21Shares, are rolling out a classification system for crypto assets, the latest in a growing number of efforts to map the taxonomy of the industry and make it more accessible for participants in traditional finance (TradFi).
The Global Crypto Classification Standard, announced Wednesday, categorizes digital assets according to three levels. It joins a classification system called datonomy, constructed by financial services behemoths Goldman Sachs (GS) and MSCI (MSCI) with data provider Coin Metrics, and the Digital Assets Classification Standard (DACS) from CoinDesk Indices that classifies the top 500 digital assets by market capitalization into use case and technology and then into industry and sector.
The core of this trend is an attempt to impose structure on apparent chaos, and help guide conventional investors as they consider stashing money into crypto. There is a huge array of crypto assets, many of which have virtually nothing in common with each other, making the industry an intimidating one to enter.
“It is crucial as there are still many misconceptions regarding crypto from traditional finance institutions,” a 21.co spokesperson told CoinDesk. “The term ‘cryptocurrency,’ widely used, is a misnomer as crypto assets can vary dramatically in nature, both as it relates to the asset (token) itself and the protocol behind it.” Read More…
