Goldman Sachs launches crypto explainer, trend tool for institutional clients

Goldman Sachs Group Inc., the 153-year old Wall Street investment bank, is launching a service to explain, categorize and bring transparency to digital currency markets for institutional investors seeking to invest in the asset class, according to a Thursday press release.

Fast facts

• Called Datonomy, the tool is a collaboration between Goldman Sachs, financial services firm MSCI Inc. and crypto intelligence firm Coin Metrics Inc.
• Datonomy classifies coins and tokens based on how they are used and aims to provide a standardized way for clients to analyze the broader cryptocurrency industry, including Decentralized Finance (DeFi) and smart contract platforms.
• “We firmly believe a consistent and standardized framework for the classification of digital assets is essential to support investors’ ability to evaluate the market,” said Stéphane Mattatia, Managing Director, Global Head of Derivatives Licensing and Thematic Indexes at MSCI, in a statement.
• The move comes as part of a wider trend of institutional adoption of blockchain and cryptocurrencies. Goldman Sachs became the first major U.S. bank to make an over-the-counter cryptocurrency transaction when it traded a Bitcoin non-deliverable option — a Bitcoin derivative settled in cash — facilitated by New York-based crypto investment firm Galaxy Digital Holdings in March.
• In March the bank reached another milestone when it offered its first Bitcoin-backed loan, joining the likes of crypto-friendly banks, such as Silvergate Capital Corp.
• In August the world’s largest asset manager, BlackRock Inc., announced it was launching a Bitcoin trust for institutional customers in the U.S. as it said it had seen substantial interest from such clients despite the broader slump in the crypto market.