Digital Assets To Get Standardization Treatment

Reading Time: 2 minutes

Cryptocurrencies will be getting some kind of uniformity across financial markets as a result of The Association of National Numbering Agencies (ANNA).

New Task Force Aims to Bring Crypto To Traditional Markets

The organization has launched a new task force for dealing with cryptocurrencies and blockchain technology, with a specific goal of getting them standardized, as much as possible, across markets.

“ANNA’s Technology Task Force (TF-22) will examine the identification of digital assets such as tokens and cryptocurrencies, blockchain technology and its’ associated evolution and application in the financial markets industry. This, with the objective to assess the role and scope of ISINs [International Securities Identification Numbers] in respect to digital asset identification and provide recommendations on the potential benefits of creating guidelines for the assignment of ISINs to all kinds of digital assets e.g. asset tokens, payment tokens, utility tokens and hybrid tokens. Underpinning this evaluation is ANNA’s core aim to support a transparent, compliant and efficient financial markets structure.”

Crypto markets to date have generally agreed on most ticker symbols. However, there are some irregularities, like the treatment of Bitcoin Cash. Some markerts list it as BCH, while others list it as BCHABC.

A standardization body can fix this if most market participants follow its directives, but it’s unclear at this point if that will be the emerging trend.

Crypto Follows Its Own Standards

In cryptocurrency, it’s just as likely that most exchanges continue to follow industry, rather than external, standards.

Nevertheless, the attention from standard bodies means that, as many have suspected, crypto is growing up. As we reported yesterday, despite a recent defeat of the Bitwise ETF, yet another effort has been undertaken by a former executive from the World Gold Council.

For many traders, the approval of an ETF will be a watershed moment for cryptocurrency. It’s just as likely to be a dud, though, as we’ve seen with the likes of Bakkt, who’ve failed to wow anybody with their opening numbers.

Standardization and regulation can mean a lot of things for digital assets. In particular, it would seem there’s a heightened possibility that traditional markets will eventually be able to list things like Bitcoin.

After all, is there any good reason that Bitcoin shouldn’t be able to trade right alongside other risky assets?

If nothing else, standardization efforts are proof that traditional entities are taking newer asset classes like cryptocurrency much more seriously.