Fidelity Investments’ division becomes the first corporate client of Ernst & Young’s blockchain tool to enhance risk management capabilities for digital assets.
Fidelity Digital Assets, a subsidiary of Fidelity Investments focused on creating products and services for institutional adoption of digital assets, will become the first corporate user of EY Blockchain Analyzer: Reconciler. This is reported by The Block.
The blockchain tool enables self-study of on-chain data to expand internal corporate risk management procedures. Fidelity Digital Assets reps plan to utilize a select range of features offered by the tool. These include analytics dashboards that monitor transaction inaccuracies, crypto address balances, and digital signatures, the statement said.
Ernst & Young, one of the “big four” global accounting firms, has reportedly been developing and enhancing EY Blockchain Analyzer: Reconciler for the past six years. Previous versions of the analytics dashboard have been used for the firm’s audit procedures since 2018, but the tool is now available for wider corporate use. The EY tool currently supports Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, and Dogecoin networks, but its functionality and analyzed blockchain networks can be supplemented according to client requirements.
“As the global digital assets marketplace continues to grow rapidly, addressing operational excellence and robust internal risk management is paramount for cryptocurrency platforms to gain a competitive edge and instill trust among investors and regulators,” said Paul Brody, EY Global Blockchain Lead.
In turn, Michael O’Reilly, Fidelity Digital Assets COO, noted that Ernst & Young’s web-based analyzer tool is one of the most powerful of its kind, and its use will allow the company to significantly expand its internal risk management processes, strengthening the security and transparency of the trading environment for its clients.
In 2022, financial holding company Fidelity Investments added the ability for 401(k) savings account managers to invest up to 20% of their funds directly in BTC.
