As cryptocurrency transaction volume grows exponentially, traders, investors, and exchange platform owners are facing a growing set of crypto-data challenges. Not only is there no easy way to connect, extract, and aggregate data from the blockchain and cryptocurrency ecosystem, but distributed and decentralized data lacks uniformity as quality, consistency, and transparency varies tremendously across data sources. Consequently, the industry’s back and middle office processes are inefficient, error-prone and in need of an enterprise upgrade.
A simple example is when one exchange platform lists bitcoin as XBT, while another lists it as BTC. What happens when there’s a fork? Now you have potentially four or more different naming conventions to manage across many exchange platforms. How do you efficiently reconcile and report current and prior periods for your stakeholders? Not to mention, there are already over 1300 coins, each of which are computed out to varying decimal places depending on the data source.
Even as cryptocurrency valuations hit new records, and more funds enter the market, the heterogeneous nature of this data means the industry must resort to tracking and reconciling millions of lines of data manually or with retrofitted applications that aren’t blockchain-native, making any type of analysis or reporting for financial, performance, or tax purposes inefficient with an incredibly high likelihood of errors. In fact, we haven’t seen a meaningful crypto-dataset that doesn’t have gaps or errors.
This is a cause for concern, as institutional investors who are looking to move into the space won’t allocate significant capital until enterprise-grade information infrastructure and practices are implemented. This is necessary to meet their fiduciary responsibility. These critical challenges must be addressed for our industry to maintain its growth rate. Simply stated, there must be reliable, scalable, and secure systems and processes to track, analyze, and report on crypto investments.
Enter Libra. This week we made significant announcements that aim to address these challenges and promote continued growth with the support of institutional investors. Not only did we announce a $7.8 million Series A round led by a prominent, multi-billion dollar European family office, as well as Liberty City Ventures, leading trader and liquidity provider XBTO, Boost VC, and Lee Linden, but a follow-on product announcement which unveils Libra Crypto Office, the industry’s first, institutional-grade solution purpose-built for the technical nature of blockchains and cryptocurrencies. Our new product has the support of XBTO as well as ShapeShift, a premier, global blockchain asset exchange platform.
Libra Crypto Office adds value through a three-stage process. First, it offers a single on-ramp that connects to exchange platforms, blockchains, and other data sources within the ecosystem. Second, the solution continuously normalizes and enriches millions of transaction records through real-time data processing engines. Finally, it assembles actionable insights and reports such as trading, inventory, and tax information that can also be delivered to other enterprise systems via APIs.
Philippe Bekhazi, CEO of XBTO, recently spoke to the product’s value and potential:
“Libra Crypto Office eliminates manual and inefficient back and middle office processes. The crypto markets operate 24/7/365, which means we must be able to produce accurate financial reports automatically, and in real time. Libra’s software will meet the needs of XBTO and our investors as we grow our business.”
Thank you for checking out our blog and your interest in Libra! We have a great team and investors who, like you, share the same goal–automation and optimization of back and middle office processes to drive global growth and adoption of blockchain and crypto. Libra Crypto Office is in production and running live customer data, so please drop us a note at [email protected] if you’re interested in a subscription–we’re ready to go!