Broadridge Financial Solutions launched Digital Assets Solutions which the financial technology provider said will help investors and advisors quickly access, better understand and monitor their digital asset investments and accelerate the convergence between decentralized and traditional finance.

Aviad Stein, global head of digital asset solutions at Broadridge told Markets Media that the firm has been spending a lot of time for the past two and a half years in finding opportunities that are synergistic to its existing businesses while also supporting the digital asset ecosystem.

The three primary goals in serving the broader ecosystem are to help meet global regulatory requirements; to focus on investor education and working with traditional institutions, such as wealth firms and asset managers, as well as the crypto-native players, such as decentralized and centralized exchanges; and to make sure they are able to provide a comprehensive data to their investors.

“The business we have built around digital asset solutions focuses on data solutions,” added Stein. “It is about how we come up with the right approach towards disclosures for crypto assets, how we facilitate the right type of communications and governance and the voting mechanism for these assets.”

Broadridge Digital Asset Solutions incorporates ClearFi, which was launched in October last year to help investors and advisers quickly access, better understand and monitor their digital asset investments.

ClearFi helps broker-dealers, exchanges, and wallet providers provide their clients and participants with both on-chain and off-chain data about digital assets, including cryptocurrencies, stablecoins, and decentralized finance (DeFi) innovations made available through their platforms. Data is aggregated data from hundreds of credible and reliable data providers, and consolidated into a standardized, normalized and consistent taxonomy, according to  Stein. He added: “That’s why our platform is called ClearFi.”

For example, if an investor wants to potentially buy a crypto asset on either Coinbase or Kraken, the data is often inconsistent between the two crypto exchanges. Stein said Broadridge Digital Asset Solutions will create standardized data so investors have the right information in the format they require, which will increase the maturity and credibility of the overall digital asset and increase adoption amongst both retail and institutional investors. The taxonomy has been built to support any type of investment instrument, regardless of whether it is part of DeFi or traditional finance (TradFi).

ClearFi currently supports nearly 500 crypto assets according to Stein, but the taxonomy can evolve to include the tokenization of real world assets and securities, such as equities. Broadridge uses AI to incorporate off-chain data by summarizing and contextualizing some of the content, with references to the original source.

“I think we have a big role in creating this ‘OneFi’ approach by creating one cohesive view of DeFi and TradFi ecosystems,” added Stein. “It may take years, but we have already started the journey of convergence.”

He argues that Broadridge has a differentiated position due to its level of credibility in traditional finance, especially through connecting regulatory bodies, intermediaries and investors.

“We are obviously leveraging that market position and credibility to build those dimensions into the digital asset ecosystem,” said Stein. “It is very synergistic to what we are currently doing, and a natural extension of our business.”

Broadridge Digital Assets Solutions has already onboarded some clients, according to Stein. For example, the platform is supporting a large centralized exchange in Canada and the UK and helping a global broker satisfy some of the ESG requirements in MiCA, the European Union’s crypto regulations.

“There is a long line of native crypto players, including centralized and decentralized exchanges and wallet providers who have approached us,” added Stein.

The firm is also working on integrating into Broadrodge’s existing platforms such as Fi360 Data and Analytics and AdvisorStream, an end-to-end platform for wealth management firms and their advisory networks, so they have the required data for providing crypto investments to their clients.

Stein said: “We are getting requests to support onboarding firms into the space, and also to provide firms with enough information and data so they can start developing strategies for this space.”

Broadridge’s fifth annual Digital Transformation & Next-Gen Technology Study was published in April this year, and found that data strategy has accelerated as a priority focus for the financial services industry.

Over half (58%) of financial services technology and operations executives globally identified data harmonization as the ideal driver for maximizing their return on investment. Firms are therefore increasing their spend to ensure they’re capable of harnessing transformative technology like AI, digital assets and cloud platforms to achieve a competitive advantage.

In the survey nearly three-quarters, 71%, of firms are making major investments in blockchain and distributed ledger technologies (DLT) this year, up from 59% in 2024. Nearly two thirds, 64%, are also making big investments in cryptocurrency, up from 51% in 2024.

The report said: “Almost half, 47%, believe DLT is enabling the development of new opportunities in the capital markets ecosystem. 73% agree that there will be greater regulation and governance around digital assets moving forward.|”