Clients in the institutional crypto asset market can address global regulatory concerns regarding system controls and processes.

KPMG, the big four auditing firm announced the launch of KPMG Chain Fusion. It is a patent-pending suite of advanced analytical tools presented in a structured model that combines data from blockchain infrastructures, and traditional systems for managing business, risk, and compliance requirements. (Blockchain News)

KPMG: As crypto-assets mature, the challenges that face institutions

• Blockchain technology powering crypto assets is fundamentally different from the traditional financial information systems
• Organizations must address the increasing interest of investors in crypto-assets and the blockchain, and the advent of CBDCs
• Further, their own business processes may be migrating to the use of decentralized applications on blockchain networks
• Institutions must efficiently and effectively integrate blockchain data alongside traditional data infrastructure to support core business functions

KPMG’s Chain Fusion ingests and structures blockchain data from different protocols alongside existing data structures from traditional technologies into a core data architecture.

Data sources may include crypto-assets providers, off-chain databases, and integrated, permissioned blockchain protocols.

The core data architecture enables advanced analytics across modules for key use cases. These include custody or ‘wallets’, proof of reserves (asset position reconciliation), and AML transaction monitoring.

Regulatory compliance

“Regulators and auditors expect fully implemented controls and processes within and across a crypto asset business – whether they are a crypto asset or traditional systems or anything in between,” said Sam Wyner, director, and co-lead of KPMG Cryptoasset Services team. “If you are a blockchain or digital asset-based business, you will have separate systems for everything.”

“Leading crypto-asset technology solutions can address process and control requirements within their own systems, but the greater challenge is making sure systems can work together, with all the right processes and controls in place between those systems,” Wyner explained.

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