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Digital Assets
Case Study: A comprehensive, well-structured sector taxonomy for digital assets

Case Study: A comprehensive, well-structured sector taxonomy for digital assets

In this case study Kyle Downey, CEO of Cloudwall, explains why he required a digital asset taxonomy system and why he chose to implement DATS into Serenity.

Introduction

In 2021, DAR and Wilshire entered into a partnership to jointly develop DATS. With Wilshire’s 50 year history in supporting institutional investors to gain access and clarity into new asset classes, the partnership would ensure that DATS became the leading taxonomy standard for Digital Assets. With the broadest coverage of any digital taxonomy system in the industry, DATS classify over 1,300 digital assets into super sectors, sectors, sub sectors, and multisector themes, DATS is the clear choice for institutional investors to identify sector based opportunities and assess risks in this emerging digital asset class.

Why did Cloudwall need to implement a taxonomy system?

Risk management requires that you look at your portfolio in many ways. You need tounderstand how the assets are performing; you may wish to use a factor risk modellike Serenity to decompose into style factors; and very commonly you also wantthe sector lens to group assets and view performance and risk at that level.

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