Big news for the crypto industry: Digital Token Identifier (DTI) added to the FIX protocol

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“We know this is a popular move and can see many benefits to adding DTI, including making it easier for the industry to audit transactions and increasing transparency, bringing more efficiency to the market.

The ISO Digital Token Identifier (DTI) standard has been added to the Financial Information eXchange (FIX) protocol, the standard messaging protocol used in electronic communications between banks, asset managers, exchanges, providers and regulators.

The ISO DTI standard is increasingly used by the industry as it uniquely identifies digital ledgers, digital tokens and cryptocurrencies using publicly available information.

FIX data type currency to support both ISO 4217 and ISO 24165

The FIX Global Technical Committee included the DTI in a recent expansion pack. He said: Identification of fiat currencies has long been standardized with ISO 4217, while identification of digital assets (including digital currencies) has only recently been standardized with ISO 24165 Digital Token Identifier. (DTI). One of the main changes is to improve the existing Currency FIX data type to support both ISO 4217 and ISO 24165.

The DTI can be used by regulators to monitor digital asset transactions in the context of anti-money laundering and combating the financing of terrorism, as well as to monitor systemic risks arising from the trading of coins. global stablecoins and other digital assets. DTI has also been recommended by ESMA as a risk management measure under the DLT Pilot scheme.

FIX is an industry-standard protocol used by financial institutions to facilitate e-commerce and financial instrument trade processing. The protocol enables market participants to communicate seamlessly and efficiently across different trading platforms and systems. The addition of DTI to FIX will enable the industry to integrate digital asset trading and settlement into their current trading and settlement operations. This will enable greater standardization, efficiency and transparency for market participants trading digital assets.

“DTI extends existing functionality to the world of digital assets”

Sassan Danesh, CEO of Etrading Software, commented: It is very encouraging to see the industry and regulators continuing to embrace the standard. We know that financial institutions are already using DTI internally, and now, with this news, they will be able to use the FIX protocol to send messages with DTIs both internally and externally.

Jim Kaye, Executive Director of FIX Trading Community, said: Adding the DTI standard to the FIX protocol was an easy decision as DTI extends existing functionality into the world of digital assets, helping the market evolve to work. with this asset class. We know this is a popular decision and can see many benefits to adding the DTI, including making it easier for the industry to audit their transactions and increasing transparency, bringing more efficiency to the market.

Etrading Software launched digital asset tracking in 2021

It was in 2021 that Etrading Software launched the tracking of all digital assets globally with a service that issues identifiers for tokens based on the new ISO standard. The ISO has selected Etrading Software to be the registration authority for this standard: Digital Token Identifier.

The new service is complementary to the existing ISO standard for tracking counterparties to a transaction via Legal Entity Identifier (LEI) and was designed by the same committee that defined the ISO standard for Unique Product Identifier (UPI) for tracking all OTC derivatives. .

Both the LEI and UPI have been recommended by the Financial Stability Board for use in regulatory transaction reporting within the G20 to improve risk management and increase transparency in traditional capital markets. .

The Digital Token Identifier (DTI) is a key component in upgrading the financial market plumbing to process digital asset transactions securely and with proper oversight. Until now, such monitoring and tracking has been impossible due to the lack of available ISO standards for digital assets, according to the announcement. The DTI is useful to both market participants and regulators.

Market participants can uniquely identify a given digital token, thereby increasing transparency for market participants and reducing operational risk. and other digital assets.

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