KPMG LLP Launches KPMG Chain Fusion to accelerate institutional adoption of cryptoasset capabilities

By Pavithra R

KPMG LLP, a global network of professional firms providing audit, tax and advisory services has announced the launch of KPMG Chain Fusion, a patent-pending suite of advanced analytics capabilities which is built on cryptoasset data & technology products to streamline the ability for financial services companies and FinTechs to offer cryptoasset services on an institutional scale.

The solution assists clients in addressing complex, foundational problems which the organisations face while competing in the institutional cryptoasset market. The nature of blockchain technology powering cryptoassets like bitcoin and central bank digital currencies (CBDC) is fundamentally different from the traditional information systems that underpin existing financial market infrastructure. These differences create significant challenges while aggregating data from different technology environments to meet internal and external expectations, including expectations for customer account management, anti-money laundering (AML) and security.

KPMG Chain Fusion enables seamless interaction across blockchain protocols and traditional systems and by ingesting and structuring blockchain data from different protocols alongside existing data structures from traditional technologies into a core data architecture. The core also enables organisations to overcome challenges including cryptographic proof of assets under custody, proof of reserves (asset position reconciliation), deployment and integration of core custody capabilities such as multi-party computational cryptoasset wallets, and transaction monitoring for AML.

“Regulators and auditors expect fully implemented controls and processes within and across a cryptoasset business – whether they are cryptoasset or traditional systems or anything in between. If you are a blockchain or digital asset-based business, you will have separate systems for everything,” said Sam Wyner, director and co-lead of KPMG Cryptoasset Services team.

The solution is designed to help clients address considerations from global regulators focusing on the integrity of control environments to support business objectives for accurate financial reporting and technology objectives for availability, security and processing integrity across both traditional and blockchain systems.

“There is a fundamental difference in technologies required to integrate– whether it be a permission or permissionless blockchain or a traditional front, middle and back-office system,” added Wyner.

The capabilities and accelerators are designed to help address these considerations by supporting companies to achieve seamless and secure adoption of core crypto business capabilities, enabled by leading technology products for data, custody and infrastructure.

“Leading cryptoasset technology solutions can address process and control requirements within their own systems, but the greater challenge is making sure systems can work together, with all the right processes and controls in place between those systems. KPMG Chain Fusion addresses those challenges by bringing these systems together with the required processes and controls under one roof,” Wyner explains.

KPMG Chain Fusion is a dynamic capability which accelerates an organisation’s ability to expand products and services while addressing new target markets. The potential for future analytics extends across essential enterprise functions, including security, finance, risk management, compliance, and audit.