Crypto Identifiers Added to ISIN, UPI

The Digital Token Identifier Foundation (DTIF), a not-for-profit division of Etrading Software, has unveiled what it terms “a major expansion of the scope of the Digital Token Identifier (DTI) to encompass regulatory reporting of crypto asset derivative trades across the G20”.

The DTI has been introduced as an underlier to two derivative identifiers; the Unique Product Identifier (UPI) and the International Securities Identification Number for OTC derivatives (OTC ISIN), the organisation says, both of which have previously focused on TradFi instruments. The UPI is a G20 mandated identifier for derivatives reporting which assists regulators identify the build-up of systemic risks in OTC derivatives markets at a global level and the OTC ISIN, a more granular identifier, is used to assist detect and investigate market abuse.

DTIF says including DTIs as underliers to both the UPI and the OTC ISIN will allow for greater transparency in the crypto derivative trading market, supporting public authorities in identifying digital asset risk globally. It adds the adoption of the ISO 24165 DTI standard “underscores the regulatory commitment to establishing a globally recognised identification standard for the growing market of crypto-asset-referenced financial instruments”.

As of 29 April 2024, crypto-derivatives which fall under the EU’s European Market Infrastructure Regulation (EMIR) need to use a DTI as an underlier to the UPIs and OTC ISINs reported to a trade repository. DTIF says the expansion of the DTI scope facilitates more efficient reporting and identification of digital asset underliers for derivative products. It adds the DTI list is expected to expand to ensure scalability and flexibility for UPI and OTC ISIN generation in the long term.

“This marks the successful launch of the DTI in the EU for monitoring of crypto-derivative risk,” says Sassan Danesh of the Digital Token Identifier Foundation. “Looking forward, we are extending the use of the DTI across the G20 jurisdictions, including in the UK, Australia and Singapore later in 2024 and Japan in early 2025.”