• Institutional investors are increasingly looking at how digital assets may be incorporated into existing and new strategies. Meanwhile, the digital asset markets and associated infrastructure continues to evolve.
   

• A tumultuous year or so for the digital asset markets has led to increased diligence standards by users of venues and exchanges and raised awareness around key considerations for enterprise risk management.
   

• This latest AIMA Industry Guide on Digital Asset Trading was produced with KPMG and leading digital asset firms and experts including Albourne Partners, Anchorage, Coinbase, Copper and GSR.

The Alternative Investment Management Association (AIMA), with KPMG and leading digital asset investors and industry experts, has added to its wide-ranging sound practice toolkit with the publication of a new industry guide on digital asset trading for institutional investors.

As a follow up to last year’s AIMA industry guide on digital asset custody and the recent publication of a new set of AIMA due diligence questionnaires for digital asset investment managers, this latest industry guide on digital asset trading aims to further support the institutionalisation of this nascent asset class.

The guide aims to provide an overview of the digital asset trading ecosystem and lifecycle, as well as highlight some key enterprise risks and due diligence considerations for institutional investors determining whether and how to trade digital assets.

For those looking to expand or diversify their investments in digital assets, AIMA’s new guide will contribute to its growing body of digital asset related industry resources, which are relatively scarce compared to sound practice literature for traditional finance. 

Co-sponsored by KPMG, the guide was produced with contributions from Albourne Partners, Anchorage Digital, Bittrex Global, BlockFills, Coinbase, CoinRoutes, Copper, Dagger Consulting, Finery Markets, GSR, Kroll, Lenz & Staehelin, RSM, Simmons & Simmons and Trovio Group.

The guide is the initiative of AIMA’s Digital Assets Working Group (AIMA DAWG) – a cross section of senior industry experts including managers, allocators and service providers. It is tasked with driving AIMA’s regulatory engagement, thought-leadership initiatives and operational guidance in the area of digital assets.

Commenting on the guide, Jack Inglis, CEO at AIMA, said: “AIMA’s role within the digital asset market is to facilitate and encourage the adoption of sound practices that will improve market maturation and stability. This latest guide from AIMA DAWG will do just this as part of our wide-ranging toolkit of resources for alternative investment industry participants.”

Commenting on the guide, Kareem Sadek, Partner, Advisory, Cryptoassets & Blockchain Co-leader and Emerging Tech Risk leader at KPMG in Canada said: “As institutional investors increasingly look to digital assets as an alternative investment class, it is crucial that they have access to reliable and comprehensive resources to inform their investment decisions. This latest industry guide on digital asset trading provides just that, offering a thorough overview of the market and its key players, as well as highlighting the enterprise risks and due diligence considerations that institutional investors should be aware of. By providing this valuable resource, we are helping to foster the institutionalization of the digital asset market, and enabling investors to navigate this rapidly evolving space with confidence.”

Commenting on the guide, Jacob Prudhomme, Director, Financial Services Risk, Regulatory & Compliance KPMG in the US said: “Recent events have made it clear that virtually every corner of the crypto-financial ecosystem could benefit from improved risk management.  This improvement would be impossible without well-informed market participants, so our objective in shaping this trading guide was to educate and inform by sharing the KPMG perspective on risks inherent to all financial assets as well as those risks specific to digital asset trading.  Our hope is this guide is a useful starting point for firms in this space looking to build or enhance their risk management practices.”

Contact Details:

Drew Nicol, Associate Director, Research and Communications at AIMA

Email: [email protected]

Jacob Prudhomme, KPMG

Mobile: +1 718 644 4704

Email: [email protected]

Kareem Sadek, KPMG

Telephone: 416 777-3446

Email: [email protected]

About AIMA:

The Alternative Investment Management Association (AIMA) is the global representative of the alternative investment industry, with around 2,100 corporate members in over 60 countries. AIMA’s fund manager members collectively manage more than US$2.5 trillion in hedge fund and private credit assets.

AIMA draws upon the expertise and diversity of its membership to provide leadership in industry initiatives such as advocacy, policy and regulatory engagement, educational programmes and sound practice guides. AIMA works to raise media and public awareness of the value of the industry.

AIMA set up the Alternative Credit Council (ACC) to help firms focused in the private credit and direct lending space. The ACC currently represents over 250 members that manage US$800 billion of private credit assets globally.

AIMA is committed to developing skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the first and only specialised educational standard for alternative investment specialists. AIMA is governed by its Council (Board of Directors).

For further information, please visit www.aima.org

About KPMG:

KPMG firms offer a wealth of experience in the digital asset space, having collaborated with numerous industry clients and governments, including Central Banks, Exchanges, and leading Financial Institutions. The global network of KPMG professionals, present across 143 countries and territories, is equipped to provide advice and support across a broad range of cryptoasset and blockchain services spanning Advisory, Audit, and Tax. With a proven track record of delivering effective services and technology solutions in the digital asset-related projects space, KPMG firms have a deep understanding of the complexities and nuances involved.

KPMG professionals in Audit, Tax and Advisory are specialist in their fields and have deep experience of the issues and needs of the investment management businesses. KPMG firms’ clients include investment managers, wealth managers, family offices, fund administrators and service providers who focus on mutual funds, hedge funds, private equity funds, infrastructure funds and real estate funds, and institutional investors for pension funds and sovereign wealth funds.

KPMG firms aim to provide tailored services of the highest standard. KPMG professionals are focused on building trusted relationships and delivering quality output through project teams that can support you from anywhere in the world, whatever your investment activity.

About KPMG International:

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.

KPMG firms operate in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

KPMG International Limited is a private English company limited by guarantee.

KPMG International Limited and its related entities do not provide services to clients.

For more detail about our structure, please visit kpmg.com/governance