Digital Token Identifier Foundation (DTIF), spearheaded by Etrading Software (ETS) for ISO standard identifiers, has inked a pivotal agreement with DLC Distributed Ledger Consulting. The collaboration aims to introduce a ‘Crypto Risk Metrics Score’ on Digital Token Identifiers (DTIs) for frequently traded tokens. This initiative enhances market transparency by combining the established DTI standard with a comprehensive risk assessment.
What is Crypto Risk Metrics?
DTIF’s DTI, compliant with ISO 24165, stands as a benchmark for uniquely identifying digital tokens. Under the ESMA DLT Pilot Regime and consideration in the ESMA MiCA consultation, DTI has garnered approximately 1850 issuances. The collaboration introduces an additional layer of information to the DTI by attaching a risk metric score, which will be provided free to all DTIF registry users. This score, derived from diverse data points and regulatory requirements from national, international, and European bodies, enhances risk assessment. DLC Distributed Ledger Consulting, a blockchain consultancy founded in 2018, adds their expertise to this venture. Noteworthy for their involvement in projects with banks and asset managers, DLC’s ‘Crypto Risk Metrics’ Software offers the first IDW 951 audited system for risk assessments of digital assets, including their role in the first regulated German AIF with direct crypto exposure.
Tim Zölitz, CFO & CRO at DLC, comments, “The cooperation with DTIF as a provider of ESMA recommended ISO codes for digital assets under its DLT pilot scheme is a big step for us – on the one hand, it confirms our first-mover position in the market of risk scores for digital assets in Europe, and on the other it contributes towards enabling companies to establish adequate risk management solutions for assets like Bitcoin, Ether etc. We see this cooperation as confirmation that our system is perceived as a leader in the European market and are, of course, very pleased about this.
Denis Dounaev, Product Owner of DTIF, comments, “We are excited to partner with DLC to add the first set of risk scores to the DTI registry, available for free to our users. Digital asset markets exhibit new risks that do not exist in traditional financial markets and require a novel approach which DLC provides. With this partnership, we are expanding the registry beyond offering a unique identifier based on an ISO standard to a set of tools to empower our users to make more informed decisions in this ever-evolving digital landscape.”
To know more about other trending usecases in the US financial services industry, like Generative AI, Open Banking, Buy Now Pay Later (BNPL), explore our other insights.
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