Goldman Sachs is introducing a framework designed to set standards in the crypto assets market by classifying digital coins based on their primary use and underlying protocol.
In a statement, the Wall Street titan says it is launching the new crypto classification system datonomy in partnership with crypto intelligence platform Coin Metrics and global index provider MSCI.
The system follows a three-level hierarchical structure consisting of the Class level that describes the fundamental purpose of assets; the Sector level that focuses on high-level specializations of digital coins, and the Sub-sector level that categorizes assets within the Sector level based on their specific product, service or function.
Goldman Sachs says the new data service can help stakeholders, including investors, service providers, researchers and developers monitor and understand the crypto market.
“This new classification system for digital assets aims to provide market participants with a consistent view of the market, allowing them to track trends across different industries, such as Smart Contract Platforms and Decentralized Finance, screen assets by a range of different filters based on their objectives, and understand aggregated properties of these assets at the portfolio level.”
The framework also aims to help users analyze the potential risks and returns of investments as well as develop new products.
“Market participants need help navigating the universe of digital assets and organizing these assets into categories to better define their risk profile and understand their returns. Datonomy has been designed to fill this gap as the digital assets market matures and can serve directly as the basis for portfolio management, reporting, benchmarking, research, and analysis.”
Goldman Sachs says datonomy can be licensed for use cases such as for reviewing and assessing portfolio performance.