In a move signaling the growing importance of risk management and transparency in the crypto industry, Ernst & Young (EY) Global has announced a significant milestone with Fidelity Digital Assets.
Fidelity Digital Assets, a subsidiary of Fidelity Investments, has become the inaugural corporate client to embrace EY’s latest blockchain analytics tool, EY Blockchain Analyzer: Reconciler.
This development is set to have a profound impact on the digital asset landscape, as these two financial giants join forces to enhance internal risk management and operational excellence.
Addressing the Need for Robust Risk Management
EY Global Blockchain Leader Paul Brody underscores the critical need for cryptocurrency platforms to implement strong internal risk management practices, not only to gain a competitive edge but also to instill trust among investors and regulators. He emphasizes that the EY Blockchain Analyzer: Reconciler has been tailored to address this pressing issue head-on.
The tool offers an easy-to-use, web-based interface that empowers operations teams to conduct on-chain data queries for various cryptocurrency-related workflows. Brody expressed his team’s enthusiasm over Fidelity Digital Assets choosing their tool to bolster their risk management efforts, underscoring the importance of this partnership.
Fidelity’s Commitment to Security and Transparency
Michael O’Reilly, Chief Operating Officer of Fidelity Digital Assets, also expressed satisfaction with this collaboration, highlighting the significance of leveraging EY’s industry-leading web-based Analyzer tool to enhance their internal risk management processes.
He stated, “We are pleased to leverage the EY organization’s industry-leading, web-based Analyzer tool to supplement our internal risk management processes.” O’Reilly further noted that the analytics tool would play a pivotal role in reinforcing Fidelity’s commitment to providing a secure and transparent trading environment for its customers.
Blockchain Analyzer: Reconciler in Detail
The EY Blockchain Analyzer: Reconciler is not entirely new, as auditors have previously used the web-based version. However, the new and improved version is accessible through EY Blockchain’s Software as a Service (SaaS) platform, making it more accessible and convenient for clients.
The tool is equipped with analytical dashboards that can identify transaction errors, wallet address balances, and digital signatures. Moreover, it facilitates bulk reconciliation of public ledger records with clients’ off-chain books and records against on-chain data, streamlining risk management procedures.
Presently, the tool supports data analysis on six prominent blockchains: Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC). The EY team is actively working to expand support for additional blockchains based on client demand, indicating their commitment to adapting to the evolving needs of the cryptocurrency market.
Future updates for the tool include features like xpub Address Derivation, block explorers, and staking.
It’s worth noting that this development represents a substantial and forward-thinking investment. The tool is the result of a multimillion-dollar investment spanning six years, reflecting the company’s long-term commitment to providing cutting-edge solutions for their clients in the digital asset sector.
Final Thoughts – Looking Ahead
As Fidelity Digital Assets and EY embark on this collaborative journey, the broader cryptocurrency market can anticipate a more secure, transparent, and regulated environment. This development could set a precedent for other industry players, emphasizing the importance of adopting advanced risk management tools to navigate the challenges of the digital asset landscape.
Enterprises interested in utilizing EY’s blockchain analyzer for transaction monitoring and reconciliation can find more information on the official website. With this partnership, the stage is set for a new era of risk management and operational excellence in the cryptocurrency space, led by EY and supported by Fidelity Digital Assets.