Cryptocurrencies and other digital assets will be open to further support after the introduction of the Financial Information Exchange Protocol (ARRANGE). Modern trading systems communicate with each other using FIX, which is a standard language. According to a press release on Monday, adopting the Digital Token Identifier (DTI) ISO standard helps TradFi (traditional finance) entities with cryptocurrency trading.
Several standardized identification codes are already in use on stocks, bonds, and other more traditional financial products around the world. This is to make it easier to find and trade assets. The introduction of DTI paves the way for TradFi to start operating and accepting cryptocurrencies.
Will DTI increase cryptocurrency exposure in business entities?
According to FIX CEO Jim Kaye, "Adding the DTI standard to the FIX protocol was an easy decision." Kaye further stated that "the DTI extends existing functionality to the world of digital assets."
In addition, Kaye mentioned the benefits of adding the DTI, including making it easier for the industry to audit its transactions and increased transparency, leading to more efficiencies in the marketplace. According to the press release, authorities can use the DTI to monitor digital operations for anti-money laundering and risk management purposes. Furthermore, almost 1,300 DTIs have already been issued, which include private ledgers and tokenized assets.
Wall Street giant JPMorgan has announced plans to open a cryptocurrency lab in Athens, Greece. However, the bank released a server earlier this year that said that 72% of institutions do not plan to invest in crypto in 2023.
Despite the recent correction, the cryptocurrency market continues to outperform traditional assets. bitcoin (BTC) is still up around 65% since January 1. Although institutions have expressed a desire to stay away from cryptocurrencies, they may change their minds along the way. DTI integration may make it easier for financial institutions to break into the emerging asset class, thereby boosting cash inflows. At press time, the global crypto market capitalization stood at $1.21 trillion, down 0.7% over the past 24 hours.
