Kaiko 2021 Year in Review
1. Data quality and connectivity are crucial for market efficiency.
Since day one, we have recognized the critical importance of data quality in driving market efficiency. Yet to have high quality data, you need high quality infrastructure connecting the increasingly complex network of crypto market participants.
It’s no secret that the cryptocurrency industry has a bit of a tech problem, with frequent downtime, dropped connections, and erratic latencies that often ripple throughout various service providers. At Kaiko, we believe that data infrastructure is critical for healthy markets which is why in 2021, we invested heavily in shoring up our tech.
In July, we launched Kaiko Stream, our flagship live data distribution service built to match the infrastructural robustness of traditional financial data feeds. Stream is more powerful and reliable than any existing data service and is the first next-generation connectivity solution we’ve built for institutional investors.
We launched several new data products available through Stream including tick-level order books and top of book data in addition to historical market replay, enabling traders to simulate real trading environments with tick-level precision. We also released a comprehensive crypto asset valuation suite designed for financial professionals who require reliable intraday and end-of-day pricing for NAV calculations and portfolio valuation.
Ultimately, good markets need good infrastructure, and at Kaiko our development approach is guided by this understanding. In 2022, we will be launching a host of new connectivity solutions and data services designed to connect the full breadth of digital assets market participants.
2. Blockchain technology is transforming the financial industry as we know it.
Kaiko’s mission is premised on the belief that the traditional financial industry is on the brink of a mass infrastructural overhaul. Blockchain technology (also known as distributed ledger technology -DLT) has the potential to disrupt nearly every layer of the existing financial system, enabling new and more economically efficient operating models through DLT-based transactions and settlement.
This momentous shift in the financial system is happening before our eyes and at Kaiko our goal is to seamlessly bridge traditional and digital markets so that we can accompany market participants throughout this transition.
Step one of our development approach is to promote interoperability between CeFi and DeFi, which we accomplished this year with the launch of our DEX Data Feed, the first data service that brings ‘on-chain’ data to ‘off-chain’ distribution. Through a single channel, our clients can now seamlessly access normalized data feeds from both centralized and decentralized cryptocurrency exchanges.
In the coming months we plan to vastly expand our DeFi data services with the launch of liquidity pools, lending and borrowing protocols, and quantitative analytics meeting the standards of existing CeFi/TradFi data products.
Step two involves our ongoing work with traditional financial institutions as they define and develop their approach to DLT-based settlement. Kaiko’s data services are built to power data-hungry DLT financial processes that will increasingly replace the legacy financial system, and in 2022 we will continue our work with institutions and regulators to accompany them on this transition.
3. Kaiko’s high-quality research and standards drive market maturity.
While data is our core product, we are passionate about leveraging our deep knowledge to develop industry-defining research and standards, which we believe drives market maturity.
In partnership with Bloomberg, we launched Financial Instrument Global Identifiers (FIGI) for crypto assets, an open standard used in traditional finance for assigning unique identifiers to traded instruments. FIGIs will vastly improve interoperability between crypto market participants at the infrastructure level and help the industry reach the next level of maturity.
The Kaiko team also contributed to the Global Blockchain Business Council’s momentous GSMI 2.0 report on crypto derivatives markets, helping define the state of the industry and issue recommendations based on our experience with our derivatives data products.
Kaiko’s research offering also grew significantly throughout 2021 and now includes our widely-read weekly market analysis, Factsheet, and Monthly Market Report. All reports are available through Dow Jones Factiva, Refinitiv, Factset, and S&P Market Intelligence.
In 2022, we will continue our efforts in defining industry standards, expanding our research offering, and leading the intellectual shift towards a decentralized financial future.
These three themes guided our development approach throughout 2021 and will continue to fuel our organic and inorganic growth into the new year, starting with further key hires, acquisitions, and an expansion to APAC with a first office in Singapore scheduled for the end of Q1.
Ultimately, nothing would have been possible without the support of our stellar team, clients, partners and investors. Thank you all, we look forward to 2022, we wish you a very happy new year and most importantly…
Carpe Data !
Interested in joining the Kaiko team? We have openings in the US, EU, and APAC!
Check out our careers page here.