‘Big Four’ accounting behemoth Ernst & Young (EY) announced on Tuesday that Fidelity Digital Assets, the digital asset arm of Fidelity Investments, has embraced EY’s latest blockchain analytic tool, the EY Blockchain Analyzer: Reconciler. This tool, accessible through EY Blockchain’s Software as a Service (SaaS) platform, is touted as a fourth-generation product that allows organizations to independently query on-chain data, thereby improving internal risk management protocols.
Addressing Internal Risk Management and Operational Excellence
In an interview, Paul Brody, chief at EY Global Blockchain, emphasized the significance of robust internal risk management and operational excellence for cryptocurrency platforms to build trust among investors and regulators. The adoption of the EY Blockchain Analyzer: Reconciler by Fidelity Digital Assets will equip them with powerful features such as analytical dashboards that identify transaction mismatches, wallet address balances, and digital signatures.
“The digital assets market demands stringent oversight, and by incorporating this technology for extracting data from the public blockchain for internal risk management processes, we continue to reinforce our commitment to providing a secure and transparent trading environment for our customers,” said Michael O’Reilly, Chief Operating Officer of Fidelity Digital Assets.
A Multi-Million Dollar Investment for Development
EY revealed that the creation of this next-generation tool involved a multimillion-dollar investment over a span of six years. Currently, EY supports various blockchains, including Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, and Dogecoin. However, the company plans to expand its support to additional chains as per client demand and to cater to the evolving needs of clients, including xpub Address Derivation, block explorers, and staking.
