Initiative reflects growing importance of institutional-grade standards for digital asset reference data and risk management
Wilshire, a leading global financial services firm, today announced that Cloudwall, a digital asset risk specialist, is integrating the pioneering Digital Asset Taxonomy System (DATS) as part of the Cloudwall Serenity platform, a digital asset risk management system, to help classify and group over 1,000 digital assets. Over time, Serenity will help investors understand market, liquidity, credit, operational and other risks both at the level of individual assets and whole sectors.
With recent volatility, the entry of sophisticated institutional investors and the maturing of the digital asset market, a clear understanding of the various risks is essential. Unfortunately, standards for reference data describing digital assets – classifications, sectors, and even basic symbol information – are still in their infancy. DATS solves this problem for the industry and enables the development of advanced systems like Cloudwall Serenity to model and visualize risk.
Mark Makepeace, Wilshire’s Chief Executive Officer, commented, “We are delighted that Cloudwall recognized the strength of DATS and has implemented it into their system to further help the industry understand the risks and opportunities of the digital assets market. The rigorous approach to research and classification makes DATS the market standard for institutional investors, who need confidence in a rules-based taxonomy in order to conduct their research and make risk-adjusted asset allocation decisions.”
Kyle Downey, CEO of Cloudwall, said, “Risk systems depend on very high-quality reference data to help properly identify the assets in a portfolio and to aggregate exposures in a meaningful way. A robust sector taxonomy is a key piece of the puzzle: it helps recognize similarities between digital assets which lead to correlated returns, and lets investors view risks at various levels like sectors, sub-sectors and industries. DATS provides the leading solution for this problem in digital assets, and we are excited to make their comprehensive taxonomy available as part of Serenity.”
Wilshire is a global provider of market-leading indexes, advanced analytics, and multi-asset investment solutions. A trusted partner to a diverse range of more than 500 leading institutional investors and financial intermediaries, our clients rely on us to improve investment outcomes for a better future. Wilshire advises on over $1.3 trillion in assets and manages $93 billion in assets and is headquartered in the United States with offices worldwide.
More information on Wilshire can be found at www.wilshire.com
Founded in 2021, Cloudwall (cloudwall.tech) is a digital asset risk specialist founded by a team of engineers, quants and capital markets specialists devoted to giving institutional investors insights into their portfolios to help guard against risks and capture opportunities. The company’s platform, Serenity, will offer an institutional-grade risk platform with a full suite of risk models tuned for digital assets. Cloudwalll is based in New York City and Singapore.
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