Goldman Sachs introduces the crypto classification system

Goldman Sachs has revealed a crypto categorization system.
The crypto categorization is known as Datonomy.

Goldman Sachs, a global investment banking, securities, and investment management company is now ready to reveal a crypto categorization system for several cryptocurrencies like Bitcoin, XRP, Shiba Inu, Solana, and several other tokens.

What is Datonomy?

Datonomy has been introduced to categorize the coins as well as tokens on the ground of their usage. The intention is to give a constant, systematic way for market members for viewing and analyzing the digital assets ecosystem.

The service will also help in making a high level of clarity into the way the market is going and can be permitted for a number of use cases like the review and assessment of portfolio performance and reporting. It has been created in collaboration with Coin Metrics and MSCI.

MSCI is the owner and only administrator of Datonomy and might get input on potential changes from this new classification system. Goldman Sachs, MSCI, and Coin Metrics are the members of The Advisory Board. With regard to this, third-party members can give competence in keeping the classification system. Who will be the part of first third-party members is not announced yet.

What do the officials say?

The head of the client strategy for the Marquee platform, Annie Marie has highlighted that the crypto space has crucially grown in the past few years. In order to make our clients understand the digital asset ecosystem, we are going to make a great structure for it. The reason for this is that they need to put their focus into performance tracking and risk management in digital assets.”

In line with the head of the client strategy, the cryptocurrencies are classified into metaverse tokens, blockchain utilities, decentralized finance tokens, specialized tokens, application utilities, value transfer tokens, business services, and other utilities.

The Global Head of Derivatives Licensing and Thematic Indexes at MSCI, Stephane Mattatia said that “We strongly believe a constant and systematic structure or categorization of digital assets as it is the key to back the investors’ ability to view and analyze the digital asset ecosystem.

He further added that “we are pulling our normal experience of what is worked in equities categorization systems to give a piece of effective investment equipment. By using that equipment, clients will be able to measure the vulnerability of their portfolios in order to detect the performance along with risk.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing