As traditional financial institutions enter digital assets, having access to data and information is critical to success.
“To be successful when investing in digital assets, institutions need to have the telemetry into what is happening across the market to be able to identify opportunities and quantify risk,” explains Shawn Douglass CEO and Co-Founder of Amberdata. “The really unique thing about digital assets is the radical transparency which is not available in traditional financial markets.”
Although this transparency results in significant investment potential, the breadth of the digital asset space is challenging, especially for those more accustomed to traditional financial instruments. Digital assets trade across a large number of venues around the world, around the clock, and within numerous jurisdictions.
Enter Amberdata. Amberdata has built and maintains an institutional-grade infrastructure to deliver digital asset data, market intelligence and risk analytics so that financial institutions can concentrate on their core business. They deliver comprehensive data and insights into blockchain networks, crypto markets, and decentralised finance, empowering financial institutions to apply traditional finance methods to digital assets. Amberdata eliminates the infrastructure setup, integration challenges and maintenance headaches to access digital asset data, thus reducing the cost and time to market for entering the digital asset class.
“As digital assets become pervasive and widely adopted, we are becoming fundamental infrastructure for the next generation of financial services,” says Douglass.
Comprehensive datasets
Comprehensive digital assets data providers are focused on empowering financial institutions with historical and real-time fundamental (on-chain), DeFi and market data for research, trading, risk, analytics, reporting, and compliance.
“Accounting for every address, every wallet, is massively complex, and a financial institution would need to spend millions of dollars and invest years just to learn how to do this properly,” Douglass warns.
Quantifying opportunities
Digital asset data can be applied within several parts of an institutional investor’s business. It can inform front-office processes like trading, research functions and portfolio management. In the middle office, the data supports risk and treasury functions. In the back office, the data is used to inform fund administration, tax, compliance and audit functions.
“This allows institutions to focus on their core strengths and not the complicated business of collecting, processing, and interpreting data into meaningful information,” Douglass says.
Familiar format
The format in which this data is presented is also key. As traditional money managers continue moving into this arena, they can appreciate access to information in a familiar format, and through familiar marketplaces like Snowflake and Google Analytics Hub.
Amberdata’s deep expertise has allowed them to build proprietary indexed, searchable, time-series data combined in recognisable formats and delivered with the reliability and quality received from data providers supporting traditional asset classes.
As financial institutions evolve beyond traditional boundaries, crypto data providers like Amberdata are critical as they provide a trusted lens into the entire crypto economy.
