Riskalyse partners with Onramp, bringing crypto risk assessment

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Investment risk assessment firm Riskalyze is partnering with crypto education and access provider Onramp Invest to bring the tech firm’s risk metrics to cryptocurrencies. This is the first integration of Onramps with a risk assessment company, and Riskalyze joins Prime Trust, Gemini, Advyzon, CFBenchmarks and CoinAPI as integration partners of Onramp.

Riskalyze will add a quantitative and objective approach to the risk of investing in digital assets, Tyrone Ross Jr. said in a statement. Advisors and investors should educate themselves before allocating [to cryptoassets] and understanding risk is an important part of it.

While crypto is a high-risk asset, the Riskalyses Toolkit allows advisors to see how crypto interacts with other areas of a client portfolio, CEO Aaron Klein said. Each crypto coin is different, but we introduce the same data points for crypto performance and volatility into the risk model as we do for all other securities covered by Riskalyze. Bitcoin is currently the only cryptoasset supported by Riskalyze.

“Bitcoin is definitely Risk 99”, the highest level of risk for an investable asset, he added, “but the really interesting analysis is how it correlates and provides diversification to others. asset classes in a specific client portfolio.

The company needs at least six months of data to assess an individual security risk, Klein said. The asset will also be labeled with an indicator that it is young.

Risk assessment has been an important consideration for advisers lately, although risk measurement specialists have been bought out by providers of wealth management platforms. Orion Advisor Services purchased HiddenLevers earlier this year and deployed behavioral finance workflows in a feature called 3D Risk Profile. Morningstar also launched a new risk assessment feature called Risk Ecosystem, incorporating elements of its FinaMetrica software acquired in 2020. Meanwhile, Riskalyze added 10,000 financial advisers to its platform in 2021.

Riskalyze even went so far as to declare the 2020s a first decade at risk, according to Klein. Part of that vision is to measure the risk presented by cryptocurrencies, he said. We were incredibly excited to help inject the number of risk into what Onramp is building.

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