First, customers of custodial crypto services like exchanges and crypto lenders will have access to transparency tools and reporting. Customers of crypto exchanges may be able to participate in showing that the exchange has correctly reserved client assets using Proof of Reserves techniques. Digital assets and encryption offer a paradigm change in auditability that traditional banking and capital markets just cannot match.
Second, for utility token initiatives and DAOs, token treasury tracking and financial reporting. Token projects and users have unprecedented insight into circulating, locked, and other kinds of tokens thanks to tools like Armanino’s Treasury tool’s real-time treasury reporting. Again, blockchains provide for public exposure, auditability, and trust in ways that traditional financial instruments and markets do not.
Third, AML/KYC policies and tools. We won’t go into detail about this because there is a plethora of information and tech tools available on the subject. Overall, players in the blockchain and digital asset ecosystem can deliver on the industry’s long-term promises by adopting a self-regulatory attitude and implementing best practices. Taking use of the benefits of public chains also aids industry participants in fending off a surge of regulatory pressure and uncertainty.
Despite the obvious advantages of transparency, the digital asset sector is only progressively embracing processes and technologies that give end-users the trust they want. More openness and accountability protects investors and token holders, increases regulatory trust, and strengthens the decentralized financial ecosystem by instilling confidence altogether market participants.
How can the industry make the process more transparent?
- Monthly or quarterly financial reports are issued on a regular basis.
- Providing treasury, employee, and investor vesting timelines for tokens
- Treasury wallets are transparent, and past activity is available.
- Third-party dashboards containing financial data are available, allowing consumers and communities to make well-informed decisions.
Armanino is a pioneer in promoting trust through digital asset solutions, providing simple-to-use products and services that simplify transparency. Several industry leaders employ TrustExplorerTM, a world-first suite of crypto-focused transparency and attest tools, with $16 billion in assets under Real-Time Attest.
