DeFi
GDF and GLEIF Partner to Accelerate Data Standardization Implementation, Connecting TradFi and DeFi
Bridging the gap between traditional finance and decentralized finance (DeFi) is a struggle that businesses have been facing for years. Two companies are joining forces to make this task simpler and more transparent: Global Digital Finance (GDF), the global membership association and platform for open innovation in digital assets in financial services and LEI Global Foundation (GLEIF), the global non-profit organization.
By joining forces, GDF and GLEIF will continue to collaborate with community stakeholders to better support their efforts in implementing data standardization. The partnership will also support the use of the Legal Entity Identifier (LEI) and the Verifiable LEI (vLEI).
Together, companies will raise awareness of the value of consistent party identification via the LEI, as described in the European Directive Crypto-asset market regulation.
Madeleine BoysGDF’s Director of Programs and Innovation said: “This partnership with GLEIF is a natural progression in GDF’s ongoing efforts to foster a growing ecosystem of standards within the digital asset industry.
“GDF serves the digital asset community as an open platform for innovation and standards, and we welcome the opportunity to partner with industry leaders like GLEIF to help define and better promote standards that enable a more integrated, efficient and interoperable digital financial system for all market participants.”
Partnership in action
An example of companies looking to bridge TradFi and DeFi can be seen in the interVASP IVMS 101 data model standard, developed in 2020 by the Joint Working Group on interVASP messaging standards. It has received support from the Digital Chamber of CommerceTHE International Digital Asset Exchange Association (IDAXA) and GDF. This standard uses the LEI to identify the originating intermediate and beneficiary VASPs, as well as the originating and beneficiary legal entities.
The integration of the LEI into IVMS 101 illustrates the practical application of the LEI in promoting transparency and trust in digital transactions. It highlights the critical need for standards that bridge the digital asset ecosystem and traditional finance, fostering greater interconnectedness between financial services.
The partnership with GLEIF is consistent with the GDF’s mission to promote and support greater adoption of market standards for the use of cryptoassets and digital assets, and the GDF looks forward to continuing its engagement with GLEIF to better advocate for and accelerate the adoption of best practices for digital assets.
Commenting on the partnership, Alexander KechGLEIF CEO, said: “With the increasing digitalization of financial services, it is essential to standardize data to improve interoperability between the digital asset ecosystem and traditional finance. Our partnership with GDF is an important step towards promoting transparency and trust in digital transactions.”
“Together, we will champion and accelerate the adoption of best practices for digital assets, paving the way for a more integrated and efficient financial system for all market participants.”