KPMG LLP has launched KPMG Chain Fusion, a patent pending suite of advanced analytics capabilities, built on leading cryptoasset data & technology products to streamline the ability for financial services companies and fintechs to offer cryptoasset services on an institutional scale.
KPMG Chain Fusion helps clients address complex, foundational problems facing organizations competing in the institutional cryptoasset market. The technology infrastructure, operational mechanics and inherent risks are fundamentally different than traditional systems supporting financial services companies and fintechs. These differences present significant challenges to accurately and completely aggregate data from different technology environments in order to meet internal and external expectations, including expectations for customer account management, anti-money laundering (AML) and security.
At its core, KPMG Chain Fusion leverages a structured data model to combine data originating from blockchain infrastructure and traditional systems in support of analytics for business, risk and compliance objectives.
KPMG Chain Fusion was designed to help clients address considerations from regulators across the globe focusing on the integrity of control environments to support business objectives for accurate financial reporting and technology objectives for security, availability and processing integrity across both traditional and blockchain systems.
“Regulators and auditors expect fully implemented controls and processes within and across a cryptoasset business – whether they are cryptoasset or traditional systems or anything in between. If you are a blockchain or digital asset based business, you will have separate systems for everything,” said Sam Wyner, director and co-lead of KPMG Cryptoasset Services team.
The capabilities and accelerators are designed to help address these considerations by supporting companies to achieve seamless and trusted adoption of core crypto business capabilities, enabled by leading technology products for data, custody and infrastructure. The core also enables organizations to overcome challenges including: cryptographic proof of assets under custody, deployment and integration of core custody capabilities such as multi-party computational cryptoasset wallets, and transaction monitoring for AML.
“There is a fundamental difference in technologies required to integrate– whether it be a permission or permissionless blockchain or a traditional front, middle and back office system,” said Wyner.
With KPMG Chain Fusion, KPMG has built capabilities to integrate and enable these systems.
Many financial services institutions and fintechs are already offering cryptoasset services. At the same time, there is an increased adoption of traditional businesses offering cryptoasset capabilities and services for assets on both public, permissionless and permissioned blockchains.
“Leading cryptoasset 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 explains.
“KPMG Chain Fusion addresses those challenges by bringing these systems together with the required processes and controls under one roof.”