Aug 25, 2018 by CR Team
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As reported by Cryptoslate.com, Ernst & Young (EY), a Big Four accounting firm, has acquired cryptocurrency investment software from startup Elevated Consciousness Inc. in July. This follows the trend of major financial firms exploring digital asset investments due to rising client demands and emerging regulations. EY will gain exclusive access to the Crypto-Asset Accounting and Tax (CAAT) software, which is used to monitor trading transaction history across multiple exchanges and wallets for revenue reporting. This tool will enable EY to extend its services into the growing blockchain and cryptocurrency sectors.

In the official press release, EY Global Vice Chair of Tax Services Kate Barton said: 

“Cryptocurrencies and blockchain are transformational forces with a strong potential to fundamentally change the way business is done. CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment.”

The acquisition marks growing momentum in ventures pursued by the EY Americas Tax Innovation Foundry, a division of the firm focused on drawing in new digital solutions for global expansion.

EY Global Innovation Leader Paul Brody noted: 

“This acquisition is another element in building out a portfolio of blockchain and cryptocurrency solutions across our businesses. … We plan to integrate the CAAT tool into our Blockchain Analyzer portfolio to develop one of the industry’s broadest sets of technology and process services in tax and assurance.”

Based in San Francisco, Elevated Consciousness is a cryptocurrency technology startup led by CEO VJ Anma, a former cryptocurrency fund manager. The startup’s software integrates investment management functionality with regulatory adaptability to fit a shifting industry environment.

Expressing excitement over their recent partnership, Anma stated:

“Numerous firms are interested in technology around cryptocurrencies like CAAT, but the unparalleled entrepreneurial know-how and experience that the Foundry offers is what attracted us to the EY organization. … My team and I are excited to support EY as the technology is taken to the next level.”

EY is not the only major financial firm exploring digital asset investments and services. Earlier this month, Goldman Sachs revealed potential plans to expand their cryptocurrency investment services with the launch of a custodial solution.

The custodial service means Goldman Sachs would hold cryptocurrencies on behalf of funds, providing a safeguard for client capital from hacking and cybertheft.

If enacted, Goldman Sachs would become the first major investment bank to back cryptocurrency funds–potentially drawing an influx of institutional capital to the sector.

The launch date of the custody offering has not yet been disclosed. According to Bloomberg, the launch of a custody operation could lead to further institutional solutions for cryptocurrency investment, such as prime-brokerage services.


Excerpts were taken from CryptoSlate.com

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