Global accounting behemoth Ernst & Young (EY) has announced its acquisition of CAAT, a Silicon Valley-based cryptocurrency startup. The purchase represents another example of the increased rate of crypto and blockchain adoption by mainstream financial juggernauts.
Details of the Acquisition
According to TheWeek.co.uk, Ernst & Young, a British accountancy firm, has acquired a Silicon Valley startup’s software to manage investments in digital currencies. EY’s Americas Tax Innovation Foundry bought Crypto-Asset Accounting and Tax (CAAT) from cryptocurrency startup, Elevated Consciousness.
Speaking on the acquisition, Foundry Leader Chirag Patel said,
“I look forward to all the opportunities in tax and accounting that this technology will afford our clients and professionals in such a dynamic and exciting market.”
Also commenting on the new acquisition, EY Partner Michael Meisler said,
“CAAT will allow us to help clients investing in crypto-assets, both in the fund space and beyond.”
Since 2017, digital currencies have moved from the sidelines to the mainstream of financial transactions, with the “Big Four” companies beginning to embrace the nascent technology.
Ernst & Young Cryptocurrency Adoption Plans
Ernst and Young has been very receptive to digital currency and blockchain technology for some time. In a press release that appeared in November 2016, EY Switzerland became the first advisory firm to accept Bitcoins for its services. This move enabled clients to settle their invoices using Bitcoin.The firm went ahead to strategically place a Bitcoin ATM for use by employees and passers-by.
Suggested Reading : Interested in learning more about Bitcoin? Click here for our beginner’s guide.
In May 2017, EY Switzerland joined the Bitcoin Association to show support for the digital currency. In September 2016, the firm organized a six-week startup challenge with six startups participating. Participating startups included Adjoint, BlockVerify, Bitfury, BTL Group Ltd, JAAK, and Tallysticks.
The purpose of the challenge was to explore the application of blockchain solutions for Digital rights management and Energy trading. In April 2017, the “Big Four” firm announced the launch of EY Ops Chain. This launch was aimed at helping organizations commercialize blockchain technology.
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