Ernst & Young enters the Cryptocurrency space as it acquires an investment software, braking some new grounds for cryptocurrencies with the hierarchy of traditional finances.
Elevated Consciousness, a Silicon Valley-based startup, has developed the aforementioned software to manage investments executed in cryptocurrencies. Dubbed as Crypto-Asset Accounting and Tax (CAAT), it is bought by Ernst & Young’s Americas Tax Innovation Foundry. The firm aims to facilitate their clients in investing in crypto assets. Michael Meisler, a partner at the company, states:
“CAAT will allow us to help clients investing in crypto-assets, both in the fund space and beyond. I look forward to all the opportunities in tax and accounting that this technology will afford our clients and professionals in such a dynamic and exciting market.”
Cryptocurrency and Traditional Financial Institutions
In 2017, PricewaterhouseCoopers (PwC), one of the Big Four accounting firms, announced that they would accept Bitcoin as payments from its clients.
Then recently, one of the world’s largest investment banks, Goldman Sachs jumped on the crypto wagon as it plans to roll out a cryptocurrency custody solution in order to manage Bitcoin for its clients. The same has potentially eased the path for more institutional money to foray into virtual currencies.
Earlier this month, nine banking giants, including Citigroup and Barclays announced their intentions of participating in an app store trial for programs which are based on blockchain technology.