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Case study
The Problem
Trident Trust is a global leader in the fund administration space with footprints across multiple continents. When Trident first entered the crypto space in 2017, they had to collect their clients’ crypto transactional data through mechanisms that were often cumbersome and unsustainable (i.e., manual input, files, screenshots, etc.). Once the data was collected, Trident would use spreadsheets to apply price and derive the trading activity value. The last step was also cumbersome and required Trident to manually transform the data into a format that was easily consumable by traditional fund accounting systems.
The Solution
In 2018 Trident became Lukka’s first fund administration customer. The first service Lukka provided for Trident was support for fund data collection and account balance calculations and valuation for crypto-fiat spot trades. Working with Trident, the Customer Success team used Lukka Enterprise Data Management to assist the data transformation and delivered standardized reports in a format that could be directly loaded into Trident’s accounting system.
As the hedge funds that Trident serves evolved and began trading more complex crypto assets and strategies, so did the breadth of support offered, backed by Lukka’s technology, data, and expertise. Lukka now helps Trident support crypto spot transactions, derivative transactions such as options/futures/swaps, lending, and staking activity, as well as transactions occurring on many Ethereum-based DeFi protocols. Lukka has automated reporting for Trident’s fund clients, allowing them to run their reports at any frequency needed and in any output.
The Results
President | Trident Fund Services
Products Used
Case study
Lukka delivers institutional-quality crypto asset pricing and reference data to IHS Markit for client redistribution and fund valuation services.
The Problem
An absence of institutional-quality crypto asset data that can be used for business operations and portfolio/holdings valuation. Businesses require both reference data and pricing and valuation data to interact with the crypto asset ecosystem. Reference data is needed to normalize and standardize the messy data and data formatting issues that arise when extracting data or interacting with the crypto-asset ecosystem. Pricing and valuation data is required to properly value these assets in accordance with GAAP and IFRS guidelines as well as guidelines laid out by agencies and regulators such as the IRS and SEC.
The Solution
IHS Markit redistributes both Lukka Reference Data and Lukka Prime Pricing Data to its institutional clients through its long-standing, institutional-quality delivery channels.
The Results
“Our partnership with Lukka will deliver financial institutions seamless access to a best-of-breed solution for Fair Market Value pricing on cryptocurrencies and other digital assets. As the demand for these innovative holdings continues to grow, this collaboration expands the strength of our comprehensive and industry-leading valuations expertise, while bringing financial markets additional transparency on complex and dynamic assets.”
Products Used
Case study
Lukka powers the S&P Cryptocurrency indices with Lukka Prime; the world’s first Fair Market Value pricing and valuation for crypto assets.
The Problem
Funds require benchmarks provided by trusted index calculation agents to measure and compare portfolio performance. These benchmarks must be backed by data that align to both the needs of the fund and current guidance by regulators like the SEC. Additionally, financial institutions looking to create investable products, like mutual funds and OTC derivatives, must have underlying pricing and valuation data to create, value, and settle these new investment products
The Solution
Institutional-quality crypto-asset indices that utilize Lukka Prime Pricing Data, the world’s first Fair Market Value pricing and valuation data for crypto assets, with management and calculation done by S&P Dow Jones Indices, the leading provider of benchmarks and investable indices. Lukka provides Fair Market Value pricing and valuation for over 900 individual crypto assets, which S&P receives and incorporates into more than a dozen crypto-asset indices that track the performance of individual assets like Bitcoin and Ether as well as composite indices that track the performance of hundreds of crypto assets.
The Results
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks. We’re excited to work with Lukka, who has been at the forefront of digital asset data services, to promote more transparency in this nascent sector.”
Global Head of Innovation and Strategy | S&P Dow Jones Indices
Products Used
Case study
Lukka provided technology, data, and professional services to assist in the preparation and passing of ShapeShift’s first financial audit.
The Problem
ShapeShift, one of the earliest US-based crypto exchanges, was faced with its first financial audit after a few years of operation. The firm had to prepare financial statements reflecting not only their own trading/borrowing/staking/validating activities, but also the trading activity of millions of active users containing hundreds of millions of individual transactions. The firm’s transactions and balances needed to be reconciled and financial records over 3 years had to be cleaned and prepared for the auditors.
The Solution
Working with Lukka’s Customer Success Team who are the world’s foremost experts in blockchain and crypto assets and leveraging Lukka Enterprise Data Management, ShapeShift was able to prepare clean records and financial statements to present to its financial auditors. Millions of transactions were reconciled and the Lukka team assisted in delivering all necessary reports requested from ShapeShift’s auditors. This resulted in the successful completion and passing of ShapeShift’s first financial audit.
Now that ShapeShift is transitioning to becoming a decentralized autonomous organization (“DAO”), Lukka will play a large part in helping them close their 2021 financials.
The Results
“ShapeShift could not have completed its audit without our partnership with Lukka. The Lukka team’s knowledge and continual support have made them an invaluable partner as we navigate the ever-changing crypto accounting landscape”
Director of Finance | ShapeShift
Products Used
Case study
Lukka provided technology, data, and professional services to assist in the preparation and timely delivery of Form 1099-B tax Reports to LedgerX’s derivatives trading clients
The Problem
LedgerX, one of the leading crypto derivatives exchange and clearinghouse regulated by the US Commodity Futures Trading Commission (CFTC) was faced with the challenge of delivering Form 1099-B tax reports to both their derivatives trading clients and the IRS. Millions of individual transactions had to be reconciled, valued and processed for gain/loss figures, then attributed to the individual traders in order to deliver accurate Form 1099-B’s for each client.
The Solution
Working with Lukka’s Customer Success Team who are the world’s foremost experts in blockchain and crypto assets and leveraging Lukka Enterprise Software, the LedgerX team delivered all necessary data for Lukka to reconcile, process and report on millions of transactions, while attributing them down to anonymized individual traders. Working with IHS Markit as the delivery agent, the teams were then able to timely distribute copies of the appropriate forms to both LedgerX’s derivatives trading clients and the IRS in preparation for tax season.
The Results
“Our traders expect a straightforward, smooth tax reporting experience. As a federally regulated exchange and clearinghouse, we are strongly committed to compliance and data accuracy. Lukka’s tech-forward approach and expert tax team caught our attention early on in our search for a reporting partner.”
CEO | LedgerX
Products Used
Case study
Lukka provides technology, data, and professional services to support past and future audits of over 80 crypto hedge funds.
The Situation
Richey May is a world-class provider of Financial Services, Business Advisory, and Technology solutions. As crypto hedge funds began to form more frequently, there became a need for firms who were capable of supporting the financial audit function for these funds. However, the new audits on crypto-assets required new technology, data, and processes to achieve satisfactory results. New issues, including valuation of crypto assets for audit purposes, wallet address ownership confirmation, and multi-exchange reconciliation, had to be solved.
The Solution
As one of the first firms to support crypto fund audits, Richey May helped pioneer many of the standard practices for the successful and thorough audit of a crypto hedge fund. In order to develop these standards, Richey May leveraged Lukka’s technology, data, and Customer Success team to automate trade and transaction data collection, data normalization, balance reconciliation, gain/loss calculations, and ultimately produce audit-ready reports to perform annual fund audits.
Richey May has worked side by side with Lukka’s Customer Success team to perform deep-dive data analytics, data reconciliation, and account remediation to ensure that full and complete transaction history is available for downstream audit processes.
The Results
“Lukka has been a great partner for Richey May, their top tier technology within the crypto asset class has allowed both our audit and tax teams to gain efficiencies as well as enhance our testing procedure with real-time data. Their responsivity, expertise, and high-quality service make them one of our most valuable service providers.”
Partner, Alternative Investment Practice | Richey May
Products Used
Lukka works with governments and regulators around the globe to ensure they keep pace with the rapidly innovating crypto ecosystem.
Contact us today to find out more.
Case study
The Problem
Trident Trust is a global leader in the fund administration space with footprints across multiple continents. When Trident first entered the crypto space in 2017, they had to collect their clients’ crypto transactional data through mechanisms that were often cumbersome and unsustainable (i.e., manual input, files, screenshots, etc.). Once the data was collected, Trident would use spreadsheets to apply price and derive the trading activity value. The last step was also cumbersome and required Trident to manually transform the data into a format that was easily consumable by traditional fund accounting systems.
The Solution
In 2018 Trident became Lukka’s first fund administration customer. The first service Lukka provided for Trident was support for fund data collection and account balance calculations and valuation for crypto-fiat spot trades. Working with Trident, the Customer Success team used Lukka Enterprise Data Management to assist the data transformation and delivered standardized reports in a format that could be directly loaded into Trident’s accounting system.
As the hedge funds that Trident serves evolved and began trading more complex crypto assets and strategies, so did the breadth of support offered, backed by Lukka’s technology, data, and expertise. Lukka now helps Trident support crypto spot transactions, derivative transactions such as options/futures/swaps, lending, and staking activity, as well as transactions occurring on many Ethereum-based DeFi protocols. Lukka has automated reporting for Trident’s fund clients, allowing them to run their reports at any frequency needed and in any output.
The Results
President | Trident Fund Services
Products Used
Case study
Lukka delivers institutional-quality crypto asset pricing and reference data to IHS Markit for client redistribution and fund valuation services.
The Problem
An absence of institutional-quality crypto asset data that can be used for business operations and portfolio/holdings valuation. Businesses require both reference data and pricing and valuation data to interact with the crypto asset ecosystem. Reference data is needed to normalize and standardize the messy data and data formatting issues that arise when extracting data or interacting with the crypto-asset ecosystem. Pricing and valuation data is required to properly value these assets in accordance with GAAP and IFRS guidelines as well as guidelines laid out by agencies and regulators such as the IRS and SEC.
The Solution
IHS Markit redistributes both Lukka Reference Data and Lukka Prime Pricing Data to its institutional clients through its long-standing, institutional-quality delivery channels.
The Results
“Our partnership with Lukka will deliver financial institutions seamless access to a best-of-breed solution for Fair Market Value pricing on cryptocurrencies and other digital assets. As the demand for these innovative holdings continues to grow, this collaboration expands the strength of our comprehensive and industry-leading valuations expertise, while bringing financial markets additional transparency on complex and dynamic assets.”
Products Used
Case study
Lukka powers the S&P Cryptocurrency indices with Lukka Prime; the world’s first Fair Market Value pricing and valuation for crypto assets.
The Problem
Funds require benchmarks provided by trusted index calculation agents to measure and compare portfolio performance. These benchmarks must be backed by data that align to both the needs of the fund and current guidance by regulators like the SEC. Additionally, financial institutions looking to create investable products, like mutual funds and OTC derivatives, must have underlying pricing and valuation data to create, value, and settle these new investment products
The Solution
Institutional-quality crypto-asset indices that utilize Lukka Prime Pricing Data, the world’s first Fair Market Value pricing and valuation data for crypto assets, with management and calculation done by S&P Dow Jones Indices, the leading provider of benchmarks and investable indices. Lukka provides Fair Market Value pricing and valuation for over 900 individual crypto assets, which S&P receives and incorporates into more than a dozen crypto-asset indices that track the performance of individual assets like Bitcoin and Ether as well as composite indices that track the performance of hundreds of crypto assets.
The Results
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks. We’re excited to work with Lukka, who has been at the forefront of digital asset data services, to promote more transparency in this nascent sector.”
Global Head of Innovation and Strategy | S&P Dow Jones Indices
Products Used
Case study
Lukka provided technology, data, and professional services to assist in the preparation and passing of ShapeShift’s first financial audit.
The Problem
ShapeShift, one of the earliest US-based crypto exchanges, was faced with its first financial audit after a few years of operation. The firm had to prepare financial statements reflecting not only their own trading/borrowing/staking/validating activities, but also the trading activity of millions of active users containing hundreds of millions of individual transactions. The firm’s transactions and balances needed to be reconciled and financial records over 3 years had to be cleaned and prepared for the auditors.
The Solution
Working with Lukka’s Customer Success Team who are the world’s foremost experts in blockchain and crypto assets and leveraging Lukka Enterprise Data Management, ShapeShift was able to prepare clean records and financial statements to present to its financial auditors. Millions of transactions were reconciled and the Lukka team assisted in delivering all necessary reports requested from ShapeShift’s auditors. This resulted in the successful completion and passing of ShapeShift’s first financial audit.
Now that ShapeShift is transitioning to becoming a decentralized autonomous organization (“DAO”), Lukka will play a large part in helping them close their 2021 financials.
The Results
“ShapeShift could not have completed its audit without our partnership with Lukka. The Lukka team’s knowledge and continual support have made them an invaluable partner as we navigate the ever-changing crypto accounting landscape”
Director of Finance | ShapeShift
Products Used
Case study
Lukka provided technology, data, and professional services to assist in the preparation and timely delivery of Form 1099-B tax Reports to LedgerX’s derivatives trading clients
The Problem
LedgerX, one of the leading crypto derivatives exchange and clearinghouse regulated by the US Commodity Futures Trading Commission (CFTC) was faced with the challenge of delivering Form 1099-B tax reports to both their derivatives trading clients and the IRS. Millions of individual transactions had to be reconciled, valued and processed for gain/loss figures, then attributed to the individual traders in order to deliver accurate Form 1099-B’s for each client.
The Solution
Working with Lukka’s Customer Success Team who are the world’s foremost experts in blockchain and crypto assets and leveraging Lukka Enterprise Software, the LedgerX team delivered all necessary data for Lukka to reconcile, process and report on millions of transactions, while attributing them down to anonymized individual traders. Working with IHS Markit as the delivery agent, the teams were then able to timely distribute copies of the appropriate forms to both LedgerX’s derivatives trading clients and the IRS in preparation for tax season.
The Results
“Our traders expect a straightforward, smooth tax reporting experience. As a federally regulated exchange and clearinghouse, we are strongly committed to compliance and data accuracy. Lukka’s tech-forward approach and expert tax team caught our attention early on in our search for a reporting partner.”
CEO | LedgerX
Products Used
Case study
Lukka provides technology, data, and professional services to support past and future audits of over 80 crypto hedge funds.
The Situation
Richey May is a world-class provider of Financial Services, Business Advisory, and Technology solutions. As crypto hedge funds began to form more frequently, there became a need for firms who were capable of supporting the financial audit function for these funds. However, the new audits on crypto-assets required new technology, data, and processes to achieve satisfactory results. New issues, including valuation of crypto assets for audit purposes, wallet address ownership confirmation, and multi-exchange reconciliation, had to be solved.
The Solution
As one of the first firms to support crypto fund audits, Richey May helped pioneer many of the standard practices for the successful and thorough audit of a crypto hedge fund. In order to develop these standards, Richey May leveraged Lukka’s technology, data, and Customer Success team to automate trade and transaction data collection, data normalization, balance reconciliation, gain/loss calculations, and ultimately produce audit-ready reports to perform annual fund audits.
Richey May has worked side by side with Lukka’s Customer Success team to perform deep-dive data analytics, data reconciliation, and account remediation to ensure that full and complete transaction history is available for downstream audit processes.
The Results
“Lukka has been a great partner for Richey May, their top tier technology within the crypto asset class has allowed both our audit and tax teams to gain efficiencies as well as enhance our testing procedure with real-time data. Their responsivity, expertise, and high-quality service make them one of our most valuable service providers.”
Partner, Alternative Investment Practice | Richey May
Products Used
Lukka works with governments and regulators around the globe to ensure they keep pace with the rapidly innovating crypto ecosystem.
Contact us today to find out more.
Everything you need to manage your crypto portfolio. Connect your accounts, see trades and balances, and make decisions about your portfolio in real-time.