Morningstar Indexes, part Morningstar, Inc., has created new DIAx Reference Prices and Indices that provide transparency and compliance for performance measures of individual digital assets and algorithms to calculate digital assets.
DIA, the open-source data platform for decentralised finance, together with global benchmark provider Morningstar Indexes, part of Morningstar, Inc., today announced the release of ‘DIAx’ – regulatory compliant reference prices and indices that will enable investors to benchmark and access digital assets via traditional markets.
Initially, the DIAx family includes benchmark prices and indices that measure the value of digital assets such as Bitcoin (DIAxBTC), DIA(DIAxDIA), and the DIA Metaverse Index DIAxMVI which measures the performance of a basket token representing companies using Metaverse technology. The family will eventually include other digital assets as well as other measures, such digital asset volatility. Every price and index are designed to provide traditional investors with safe, frictionless access the digital asset market. DIAx reference price feeds are compliant with both the IOSCO Principles for Financial Benchmarks and the UK & EU Benchmarks Regulations.
Transparent and accurate price feeds
DIA obtains price data at trade level from a number of digital asset exchanges to create the data that is used in the calculation of the indices. Coinbase, a centralised exchange that provides transactional data via an API to their servers after they have gone through centralized security verification and validation processes. Decentralised exchanges such as Uniswap allow trading via peer-to-peer transaction, and are stored, verified, and computed publicly on a Blockchain. DIAx Indices combines both data types to produce holistic prices that reflect fragmented trading in digital assets. The sources and computational methodologies for DIAx Indices’ underlying data feeds are fully transparent and available open-source.
Digital Asset Market: Bridges
Current estimates of the digital asset market at USD 2.89 trillion are growing. This new asset class has seen a rapid growth in popularity over the past few years. Traditional investment companies are now interested in creating products that can be accessed by non-crypto native investors. As they allow for regulated access, digital asset benchmarks will be a critical component of creating these bridges.
“In the past two years, decentralised finance applications have shown that they can attract capital and provide value. While we’ve seen very strong growth, the size of the market is still tiny compared to the traditional financial space.” says Michael Weber, DIA’s Founder. “DIAx products allow safe, regulated capital access to digital assets. We are thrilled to collaborate with Morningstar Indexes to provide their benchmark expertise.”
“We are excited to work with DIA to help them deliver high quality and efficient tools for investors to access a broad range of markets, from established to emerging areas such as digital assets,” said Head of Morningstar Indexes Europe Tobias Sproehnle.
DIA (Decentralised information asset) is an open source data platform and Oracle for DeFi. DIA utilizes cryptoeconomic incentives to increase supply, share, and use transparent and crowd-verified price information and oracles for financial and other digital assets.
Morningstar Indexes was built to keep up with the evolving needs of investors – and to be a leading-edge advocate for them. As an investor-focused, transparent leader in data research, Morningstar Indexes has a rich history that allows us to help individuals, institutions, wealth mangers, advisors navigate investment opportunities in all major asset types, styles, and strategies. We offer a variety of index solutions that can help investors integrate ESG objectives in their investment processes. Our services include assessing the risk and return using traditional benchmarks, as well as helping them to assess it. We help investors answer today’s increasingly complex questions so that they can more easily reach tomorrow’s goals.
Please visit indexes.morningstar.com for more information.