Bloomberg issues FIGI for cryptocurrencies
Bloomberg and Kaiko have partnered to issue the first series of Financial Instrument Global Identifiers covering crypto assets. The duo announced this latest development via a press release earlier today.
In the press release, Bloomberg said the FIGIs for crypto assets enable interoperability between industry participants such as digital asset exchanges, data aggregators, custodians, service providers, and regulators.
The features would make it easier and more transparent to track the prices of cryptocurrencies across crypto exchanges and other service providers. "Incorporating FIGIs at the infrastructure level enables a coherent view of market data across multiple providers and applications. FIGIs will be assigned at three levels of granularity: asset, currency pair, and trading platform. Application of the FIGI hierarchy in this way will provide all market players with greater transparency and a broader view across the sector," the release added.
The launch of the FIGIs comes as the demand for cryptocurrencies continues to grow globally. The cryptocurrency market has grown to become a $2 trillion industry, with rapid adoption in various parts of the world.
Market experts and analysts are confident that the cryptocurrency market will soon be worth $5 trillion and above. Bitcoin is currently trading close to $60k again for the first time in months, and it is expected to reach the $100k level before the end of the year.
Ambre Soubiran, CEO of Kaiko, commented that "The lack of taxonomic, regulatory, and classification standards is one of the cryptocurrency industry's greatest pain points today. We believe that FIGIs for crypto assets will vastly improve interoperability between service providers and bring much-needed uniformity to the sector."
As the number of cryptocurrency assets continues to increase, FIGI's would become crucial to the operations of digital asset exchange operators, custodians, wallets and several other cryptocurrency service providers.