Cryptocurrency transactions are becoming increasingly popular amongst investors and traders worldwide due to its ease of access, decentralized network and potential high returns. To accommodate this growing trend and facilitate smooth trading, The Financial Information eXchange Protocol (FIX), the language with which modern trading systems communicate with each other, has added the Digital Token Identifier (DTI) ISO standard to provide support for crypto and digital assets. DTI streamlines trading operations by carrying the same ID codes used for conventional financial instruments, which is widely accepted by Wall Street institutions. According to Jim Kaye, executive director of FIX, eliminating difficult to audit transactions and increase transparency of crypto trading is the primary objective of integrating DTI.

The adoption of DTI supports effective market auditing and risk assessment for Anti-Money Laundering (AML) compliance. Moreover, transparency in global cryptocurrency markets allows regulatory authorities to track the global flow of digital assets. Consequently, this would reduce implicit risk associated with cryptocurrency trading operations, such as cryptocurrency theft and frauds. As of Monday, a statement released by DTI stated that approximately 1,300 DTIs have been issued so far, which include private ledgers and tokenized assets.

Stephen Walker, Co-Head of Blockchain at JPMorgan Chase & Co. expressed confidence in the importance of DTI stating: “DTI provides an organized structure that gives confidence to the market infrastructure participants (i.e. exchanges, brokers, custodians, etc.) with respect to regulated digital asset trading. DTI will help accelerate the post-trade workflows for digital assets that have been prohibited from traditional exchanges due to lack of standards in the ID system.”

In summary, the integration of the Digital Token Identifier (DTI) ISO standard by the Financial Information eXchange Protocol (FIX) has given a major boost to crypto investors and traders by providing a more organized and transparent trading infrastructure. This new plumbing aims to open the doors for Wall Street stalwarts to confidently enter the market to trade crypto and other digital assets. What’s more, DTI is also effective in streamlining the post-trade workflows, providing enabling technology to leverage existing market infrastructure, and most importantly, monitoring the global flow of digital assets for AML compliance.



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