Bridging the gap between traditional finance and decentralised finance (DeFi) is a struggle firms have faced for years. Two firms combining forces to make this simple and more seamless are Global Digital Finance (GDF), the global members association and platform for open innovation in digital assets in financial services and the Global LEI Foundation (GLEIF), the global not-for-profit organisation.
By joining forces, GDF and GLEIF will continue to collaborate with community players to better support their efforts in implementing data standardisation. The partnership will also support the use of the legal entity identifier (LEI) and verifiable LEI (vLEI).
Together, the firms will raise awareness of the value of consistent party identification via the LEI, like that described in the EU’s Market in Crypto Assets regulation.
Madeleine Boys, GDF director of programmes and innovation says: “This partnership with GLEIF is a natural progression in GDF’s ongoing efforts to foster a growing ecosystem of standards within the digital asset industry.
“GDF serves the digital asset community as an open innovation and standards platform and we welcome the opportunity to partner with industry leaders like GLEIF, to help set and better promote standards that enable a better integrated, efficient and interoperable digital financial system for all market participants.”
Partnership in action
An example of firms looking to bridge TradFi and DeFi can be seen in the IVMS 101 interVASP data model standard, developed in 2020 by the Joint Working Group on interVASP Messaging Standards. It received the support of the Chamber of Digital Commerce, the International Digital Asset Exchange Association (IDAXA), and GDF. This standard leverages the LEI to identify originating intermediary and beneficiary VASPs, as well as originator and beneficiary legal entities.
The integration of the LEI into IVMS 101 illustrates the practical application of the LEI in promoting transparency and trust within digital transactions. It underscores the critical need for standards that bridge the digital asset ecosystem and traditional finance, fostering greater interconnectedness across financial services.
Partnering with GLEIF is true to GDF’s mission of promoting and underpinning the greater adoption of market standards for the use of crypto and digital assets, and GDF looks forward to continued engagement with GLEIF to better advocate and accelerate the adoption of best practices for digital assets.
Commenting on the partnership, Alexandre Kech, CEO at GLEIF says: “With the growing digitisation of financial services, it is essential to standardise data to enhance interoperability between the digital asset ecosystem and traditional finance. Our partnership with GDF is a significant step towards promoting transparency and trust within digital transactions.
“Together, we will advocate and accelerate the adoption of best practices for digital assets, ultimately paving the way for a more integrated and efficient financial system for all market participants.”
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