Etrading Software, through its non-profit division the DTI Foundation, announced today it has launched a new service to enable the tracking of all digital assets. The service will issue identifiers for digital assets based on the new ISO standard, the Digital Token Identifier (DSO).
ISO has selected Etrading Software to be the Registration Authority for this standard.
This new service is complementary to the existing ISO standard for tracking counterparties to a trade via the Legal Entity Identifier (LEI). It is designed by the same committee that has defined the ISO standard for the Unique Product Identifier (UPI) for tracking all OTC derivatives globally. Both the LEI and the UPI have been recommended by the Financial Stability Board to be used for regulatory reporting of trades across the G20 to enhance risk management and increase transparency in traditional capital markets.
New DTI extends the scope of the ISO standards to the cryptocurrency token asset class.
“We are delighted that the new DTI has begun work, helping industry uniquely identify digital assets based on objective, verifiable information. This is an important step for the industry in being able to identify digital assets, in a standardized way and reduce ambiguity, increasing transparency and consistency, enabling further global interoperability and lower the bar for greater institutional investment in this burgeoning asset class.”
– Sassan Danesh, Managing Partner of Etrading Software
Initially, the DTI Foundation has issued identifiers for the top 100 cryptocurrencies by market capitalization. With the opening of registration to market participants, the DTI Foundation aims to issue additional identifiers as required by market participants and regulators, with stablecoins being a priority.
“ISO 24165, can be used by investors, exchanges, data aggregators, ecosystem participants, regulators and issuers, who can now submit an application to register a fungible digital token and receive a DTI, which is a random, unique and unambiguous identifier. Registration eligibility for the DTI is based on objective and verifiable information provided by the applicant. This will help the market identify different tokens that may be exchanged, aggregated, listed, or tracked.”
– Dominique Tanner, Chairman of ISO/TC 68/SC 8
The DTI can be used by regulators to monitor digital asset trades for anti-money laundering, combating terrorist financing requirements, and also for monitoring systemic risks arising from the trading of global stablecoins and other digital assets. Further, the DTI can be used by market participants to uniquely identify a digital token (for example to distinguish unambiguously between ‘Bitcoin’ and ‘Bitcoin Cash’) thereby increasing transparency for market participants and reducing operational risk.