NEWS & BLOGThe Importance of Data and Standardization Within Digital Assets
Alts Axis By Brian Nibley | MG Stover custom-tailors fund administration for hedge, private equity, VC and digital asset firms
Not all crypto markets are created equal.
At least, that’s how it looks from the perspective of a fund manager in the digital asset space. While exchanges may trade the same assets, the way they report those assets can look different.
Some exchanges list bitcoin under the “BTC” ticker while others list it under the “XBT” name, for example. To the everyday trader, this might not seem like a big deal. It’s not that hard to figure out which asset is which.
But for those managing large funds dealing with a lot of capital and a high volume of trades, these minor differences can create a huge headache.
Keeping track of transactions and all related data becomes difficult when you don’t know for certain which asset was involved. There needs to be a way to clarify each trade for reporting purposes, and it can’t be done manually. This type of organization is referred to broadly as data standardization.