Quantifi, a provider of risk, analytics and trading solutions, has today announced the release of two whitepapers on cryptoassets, co-written with OKCoin, a leading fiat-supporting digital asset marketplace with services in 110 countries.
The first paper, ‘Understanding the cryptoasset Market’, explores the taxonomy of cryptoassets and the evolving industry landscape. As detailed in the paper, cryptoassets are digital assets that use cryptographic techniques to generate a medium of exchange of financial transactions. They represent a seismic shift in the financial markets and, in recent years, have grown in popularity. The technological advancements behind cryptoassets have the potential to disrupt the financial system as we know it.
“Even though, trading cryptoassets presents significant challenges, it is our view that through technology, regulatory development and comprehensive risk management these challenges can be minimized”
Dmitry Pugachevsky, Research Director, Quantifi
“There has recently been substantial growth in cryptoasset marketplaces and product offerings,” comments Wilfred Daye, Head of Financial Markets, OKCoin. “As more and more institutions operating across the capital markets grapple with the implications of cryptoassets, the market structure and regulatory uncertainty remain a concern for traders. Meanwhile the cryptoasset marketplace continues to broaden the range of fiat currencies to support,” continues Wilfred.
The Global Financial Crisis of 2008 underscored the importance of credit risk in the financial markets. Since 2008, regulatory reform has been introduced to restore stability and confidence back into the banking industry. An exciting technological advancement that is set to transform the financial sector is the development of the cryptoasset industry. Although rarely considered in the same context, the cryptoasset industry is not immune to credit and counterparty risk. The second whitepaper, ‘How to Manage Cryptoasset Credit Risk’, provides a detailed insight into the risk inherent to the cryptoasset market.
“The main use case for cryptoassets is trading and a key component of trading is managing risk. Credit risk is probably the most important type of risk that cryptoasset traders face,” comments Dmitry Pugachevsky, Research Director, Quantifi. “Financial institutions and investors will continue to invest in technology designed to help manage the unique risks involved in cryptoasset trading. Even though, trading cryptoassets presents significant challenges, it is our view that through technology, regulatory development and comprehensive risk management these challenges can be minimized,” continues Dmitry.
About OKCoin
Founded in 2013, OKCoin is one of the world’s first and largest regulated digital asset marketplaces. The company provides traders and institutions with a fiat-to-crypto and crypto-to-crypto trading platform for digital assets including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, XRP, Cardano, Stellar, Zcash, 0x, TRX and others. OKCoin’s mission is to make digital assets and convertible virtual currencies accessible to the world while complying with the highest regulatory standards. As a registered Money Services Businesses (MSB) with the Financial Crimes Enforcement Network (FinCEN). The company is headquartered in San Francisco, with offices around the world to serve its growing community and customer base.
For further information, please visit www.okcoin.com
