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Reuters Scales Up Crypto Data Offering

Reuters Scales Up Crypto Data Offering

(31 July 2018 - Europe) Thomson Reuters has partnered with CryptoCompare to integrate data for 50 coins into the group’s financial desktop - “Eikon”.

The move emphasises the significant jump in interest among institutional enterprises for new digital currency assets so they are well prepared and not potentially left behind by their adept innovative competition. The development allows the integration of order book and trade data across several exchanges into Eikon in addition to other data brokers providing their own prices to Eikon. Thomson Reuters has been engaged with CryptoCompare since the data aggregator’s involvement in its blockchain “hackathon” in 2016. Data on blocks in the chain could indicate potential price changes and underpin valuations of cryptocurrencies. The news comes as Starbucks releases plans set itself up to accept Bitcoin converted through the Bakkt system, a Bitcoin trading platform developed by New York Stock Exchange owner Intercontinental Exchange (ICE). Bakkt is a new company that will help trade and convert the best known cryptocurrency to fiat money (government-backed legal tender).

Half of Thomson Reuters’ clients are machines so the firm will ensure that the new data is machine-readable and easily integrated into institutional workflows. It is expected Thomson Reuters will eventually provide the same level of data as in traditional markets and new types of data such as blockchain analytics. US investors continue to show growing interest in cryptocurrencies although there is still some concern towards enabling trading given the high levels of inherent underlying volatility. New business models are starting to emerge aimed at reducing volatility, such as by pegging the trading against a real currency, like the US dollar, to control variability. The implementation of new business models related to the exchange of cryptocurrencies could have a positive impact on future uptake. Singapore is the most active driver of regional collaboration, investing in the development of a regional Fintech innovation sandbox.

CryptoCompare provides real-time market and pricing data on more than 5,000 coins and 200,000 currency pairs globally. CryptoCompare connects to an exchange’s server and collects trade data which is normalised and aggregated for institutional investors. Charles Hayter, CryptoCompare CEO and founder, said “Exchanges have to meet our criteria, including their corporate structure. We essentially act as a gatekeeper to ensure the data we use is accurate and reliable. The firm has been collating data on cryptocurrencies since 2014. This experience means the firm knows the more reputable exchanges after watching a number of platforms come into and out of existence. We know there are institutions on the sidelines who are waiting for the infrastructure to develop for this new form of finance”.

Sam Chadwick, director of strategy in innovation and blockchain at Thomson Reuters, stated that the firm has been investigating blockchain and cryptocurrencies proactively since 2015.  “Last October there was a complete change in perception towards cryptocurrencies,” he said. “We launched an Eikon page with a dashboard for cryptocurrencies and it was the second most viewed FX page between October and March. We want to provide data for price discovery and CryptoCompare’s diligence in aggregating data is extremely solid. They can act as a steward of the space as it evolves and we can provide a broader spectrum of data on Eikon with confidence. Having data on Eikon will help institutionalise the market by providing validation on cryptocurrencies that exist and by building the ecosystem. The transaction flows on chains will provide new trading opportunities”

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