Insight

Cryptoassets

An introduction and the potential risks

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Brian Consolvo

Principal, KPMG LLP

+1 757-646-6378

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Ahmed Saleh

Director, Technology Risk Management, KPMG US

+1 402-637-5014

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Nana Amonoo Neizer

Director Advisory, Technology Risk Management, KPMG US

+1 402-999-1816

The rise of cryptoassets

Cryptoassets like Bitcoin and Ethereum have made their way into the mainstream financial industry and are being sought out by retail investors as well. We’ve seen companies like Tesla, Block (formerly Square), and Microstrategy put them on their balance sheets as reserve assets, financial institutions offering their customers access to crypto-related products, and retail investors buying them on exchanges. The adoption and acceptance of cryptoassets have accelerated at an incredible pace, leading to a nearly $2.2 trillion market cap.

But what exactly are cryptoassets?

Broadly defined, cryptoassets are digital units of account in which cryptography and open-source software are used to regulate the generation and distribution of units, which get tracked on a public ledger, known as a blockchain.

There are many risk-related challenges facing organizations as they institutionalize cryptoassets. Lessons learned from traditional business models are still applicable, but organizations will need to challenge these through a crypto lens. There is a need for a comprehensive framework and crypto-specific capabilities to support this transformation and prepare for a changed future.

Our new point-of-view article takes readers on an introduction to cryptoassets and the potential risks, and steps organizations can take to navigate these risks and turn them into opportunities.

Read the article.

KPMG cryptoassets services offering

KPMG has a dedicated cryptoassets incubator that supports our Advisory networks including Technology Risk Management, Internal Audit and Enterprise Risk, and Cyber Security Services.

Our COE’s services encompass the full life cycle of both blockchain solutions and cryptocurrency businesses. These services include strategic realization, regulatory guidance, risk assessment, control design and assessment, IT audit and attestation support, and information and cyber security. Additionally, we work closely with the KPMG Audit, Tax, and broader Advisory service lines to help deliver a full offering of services for our clients.

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