Goldman Sachs has teamed up with MSCI and CoinMetrics to develop a new resource for investors to understand the crypto industry.
Wall Street banking giant Goldman Sachs has launched a new crypto data service for its institutional clients.
In a Nov. 3 announcement, Goldman said it had partnered with index provider MSCI and crypto data firm CoinMetrics to create “Datonomy” – a digital asset taxonomy system that groups cryptocurrencies according to their use.
The new system allows investors to screen assets based on their underlying properties and identify market trends. That could be useful for an industry that has sprawled from its original use case, payments, to gaming and complex derivatives.
“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, the head of derivatives licensing and thematic indexes at MSCI, in a statement.
Over the years, the crypto industry has evolved from being purely a payments mechanism into one that consists of different sub-sectors. Smart contract platforms now serve a wide range of functions, ranging from decentralized finance (DeFi) to Play-to-Earn (P2E) blockchain gaming.
As is the case with any industry, crypto tokens have often seen rallies based on the flavor of the season. For instance, in August 2021, Layer 1 platforms like Solana, Terra, Fantom and Avalanche all saw monthly gains of over 200%.
Goldman isn’t the only financial services firm looking to educate their investors about cryptocurrencies. On Wednesday, Fidelity opened its waitlist for commission-free crypto trading, along with educational resources to make “crypto a lot less cryptic.”