The self-auditing nature of blockchain means there will be a “Kodak” moment for firms that fail to evolve and adapt. The multi-billion audit industry may be on the cross-hairs. However, KPMG–a leading accounting firm offering services to governments and institutions, is readying for the future. In a press release on June 22, 2020, the accounting giant announced the launch of Chain Fusion–a digital asset management product by KPMG whose development started in February 2020.
The KPMG Chain Fusion
KPMG Chain Fusion is a suite of analytics tools specifically built to serve the blockchain industry by enabling financial service companies and Fintech startups to serve customers at an institutional scale. Upon integration, adopting organizations will better navigate through regulatory challenges vital in crypto-asset management.
The tool helps in financial reporting, risk assessment, security, and meeting processing needs by drawing data from vast and often siloed blockchain databases and traditional systems.
Toward this end, Chain Fusion core depends on structured data and compliance with regulators’ requirements to ensure integrity across blockchain and traditional systems. By standardizing generated data, an organization can run advanced analytics based on set conditions.
Keeping up with Demand
The director of the KPMG Crypto-asset Services team, Sam Wyner, said the product was released in response to the increasing adoption of crypto-assets by traditional businesses.
Creating a product that works was their greatest motivation. As such, they have created several modules fine-tuned according to responses received from companies across the board.
“Regulators and auditors expect fully implemented controls and processes within and across a crypto-asset business – whether they are crypto-asset or traditional systems or anything in between. Leading crypto-asset technology solutions can address process and control requirements within their systems, but the greater challenge is making sure systems can work together, with all the right processes and controls in place between those systems.”
Audit Firms to Catalyze the Growth of Blockchain Ecosystems
With better management systems for crypto-assets, the heavily regulated institutional grade investors will have a reason to dip their toes in the fast-growing space.
As billions are pumped and regulation formulated for streamlining purposes, the entry of established firms is a shot in the arm for blockchain and related applications.
Audit firms, for instance, will be needed to catalyze the growth of blockchain ecosystems though the latter is designed to rid intermediation.
A recent PwC and Elwood Asset Management revealed that the Asset under Management (AUM) for crypto hedge funds had risen 100 percent through 2019 to over $2 billion.