Financial Integrity for Regulated Banks, Exchanges and Custodians

At Crypto Finance Forum, Antoine Scalia announced the next generation of Cryptio’s product suite – Bedrock. Introducing new primitives for reconciliation and compliance that are crucial for exchanges, brokers, banks, stablecoin issuers, and ETFs. Plus a new back-end infrastructure for a step change in scalability and speed.

Key takeaways from the keynote:

• Regulated custodial enterprises are setting the standard for financial reporting and compliance in crypto.
• Bedrock is Cryptio's next-generation platform with new reconciliation, multi-inventory and scalability primitives.
• Th new platform automates reconciliation across Liquidity providers, On-chain wallets, Custodians and most crucially - Internal Execution Systems and OMS.
• Our new back-end infrastructure delivers step change improvements speed and scalability for high-volume transaction operations
• Bedrock is built of edge-cases and customizability to ensure reporting can be set up to meet regulatory requirements globally. Including but not limited to MTL, MiCa, VARA, ADGM, PSA, and EMI.

Let’s delve deeper into how Cryptio Bedrock is revolutionizing the back-office processes for crypto enterprises.

The Cryptio journey: On-chain foundations and TradFi grade controls

For over six years, Cryptio has powered the back office of the innovators in digital assets. Trusted by over 450 leading crypto enterprises and institutions—including Circle, Uniswap, Transak, Bancolombia (Wenia), and Chivo (El Salvador)—our platform has evolved to address the complex demands of crypto accounting and compliance.

On-chain transaction categorization & accounting primitives (2018-2022):

• The rise of stablecoins and DeFi brought with it significant challenges, such as the implosion of CeFi and regulatory pushbacks.
• Cryptio launched Ionic, addressing critical pain points like on-chain transaction tracking and integration with platforms like QuickBooks.

Regulated enterprise resource management & audit compliance (2023-2024):

• As the crypto industry matures, businesses are increasingly facing stringent reporting and compliance requirements.
• We’ve focused on solving issues such as internal controls, balance reconciliation, and ensuring compliance with GAAP and IFRS standards.
• Cryptio Colossal was launched to assist audited crypto businesses in achieving regulatory compliance.

Meeting the demand for compliant financial practices

The next wave of crypto adoption is driven by regulated custodial products. Our focus is on enhancing reconciliation processes, managing high transaction volumes, and ensuring comprehensive regulatory compliance for enterprises such as exchanges, banks, custodians, brokers, and stablecoin issuers.

Cryptio is dedicated to building the infrastructure needed to support mass adoption, particularly among institutional players

Regulated enterprises face particular back-office challenges

Exchanges, banks, custodians, and stablecoin issuers—face intricate challenges for which traditional solutions are inadequate.

1. Reconciliation: Data ingestion and reconciliation across systems, liquidity provider accounts, customer and corporate wallets, and internal databases are costly pain points. Inconsistent blockchain data, along with the resources required for manual oversight, makes compliance challenging.
2. Data processing: High-volume transactions often overwhelm existing systems, causing breakdowns in cost-basis computation, filtering, and mapping. Many competitors or in-house systems simply cannot manage the scale required for reconciliation.
3. Global compliance: Scaling crypto businesses globally demands adherence to local and global regulatory frameworks. Businesses need a unified platform to handle all regulatory outputs with ease.

Introducing Cryptio Bedrock: The next-generation back-office infrastructure for regulated enterprises

Cryptio Bedrock introduces new primitives that help custodial businesses have strong controls over their back-office operations. Here’s what makes that possible:

Reconciliation Engines: Ingest and reconcile crypto balances and transactions across on-chain wallets, liquidity providers, and internal databases. Automate millions of customer wallet and corporate balance reconciliations using our reconciliation engine and blockchain reconciliation API.

Customer highlights with Marissa Scicchitano, Audit Principal, Wolf & Co

We’ve been partnering with Cryptio little over a year now. We use Cryptio tool for many of our audits in the past year whether it would be exchanges, miners, wallet providers, ATM companies, investment companies. With the Cryptio tool we are able to reconcile the clients data to Cryptio data to perform existence in compliance procedures. As auditors, we are required to confirm that our client's records are true and accurate. We leverage Cryptio as the reconciliation tool to make sure what our clients are reporting to us actually reconciles to the blockchain data and the pricing data that is available through the platform.

Scalability: Process over 1 billion transactions and 100 million wallets monthly, supported by our pioneering performance, batching engine, and workflow automation that process, categorize, filter, and calculate financial activities at scale. To ensure that businesses can scale without hiccups.

Customer highlights with Justin Wong, CFO, Uniswap Labs

We went from 12 tokens to 5k+ tokens across 9 blockchains. Our monthly transaction volume went from 200k a month to almost 4 million a month. It was crazy, and when it happened, we went to Antoine and his team to understand what we could do. Antonie’s team worked closely with us and created the Batching engine. It’s been really great. The Batching engine ingests all the data and consolidates it daily. We are going from 4 million transactions a month back to hundreds of thousands. Although transactions are less, it makes our process more efficient, and we can still look into the transaction-level details needed. It retains the original level of data so that we can plug into it at a later point.

Compliance: Trusted by leading institutions, our platform meets stringent regulatory standards, offering tools like a regulatory reporting suite to support license applications. Customizable solutions to adhere to various regulatory standards across jurisdiction, licenses such as MiCA and VARA.

Our highlights with Antoine Scalia, Cryptio CEO

We are making it easier to comply with the reporting standards needed for crucial licenses. Our customers are expanding into different jurisdictions with different set-up rules and licenses that they must comply with. It is really tough to grow the back-office capability and build reporting and trust with different stakeholders in this jurisdiction. We have worked with our customers to build the reporting tools so they can comply with MTL licenses in the USA and MiCa in Europe.

Strategic alliance with KPMG

Cryptio has established a strategic alliance with global accounting and advisory firm KPMG to enhance compliance and advisory services for crypto businesses. This collaboration is essential as we navigate a new era of financial integrity.

Our highlights with Antoine Scalia, Cryptio CEO

Transition and building reporting tooling to help companies report and comply with regulations come from our work with KPMG. We are able to dive deep into the regulatory frameworks from different jurisdictions and make sure what we build with the customer meets the requirements.

The launch of Cryptio Bedrock marks a new era of financial integrity for regulated crypto enterprises. As the crypto industry continues to grow, Cryptio remains committed to empowering businesses with innovative solutions that ensure compliance and scalability.

Get started with Cryptio Bedrock today

If you are a crypto enterprise looking to upgrade your back-office setup, speak to our team about your crypto back-office needs.