EY expands blockchain strategy in cryptocurrency tech acquisition
Big Four giant EY acquires cyrpto technology from San Francisco-based startup
Top accounting firm EY has acquired technology assets and related patents of the Crypto-Asset Accounting and Tax (CAAT), a technology developed by Elevated Consciousness.
The San Francisco-based startup launched this technology to connect with multiple cryptocurrency exchanges and wallets, which allows improved visibility into cryptocurrency transactions and inventory.
The firm confirmed that the acquisition is part of its strategy to expand its blockchain-relayed work across the globe, and eventually become a leader in cryptocurrency accounting and tax.
Paul Brody, EY global innovation leader, said: “This acquisition is another element in building out a portfolio of blockchain and cryptocurrency solutions across our businesses.
“Tax strategy, planning, and execution will be a key part of everything we build across our solutions, from supply chain management to software licensing solutions.
We plan to integrate the CAAT tool into our Blockchain Analyzer portfolio to develop one of the industry’s broadest sets of technology and process services in tax and assurance.”
EY strives to demonstrate innovation through its ventures sourced by its Amercias Tax Innovation Foundry, which builds new businesses enabling EY member firms in the Americas to provide new digital solutions to customers.
Chirag Patel, leader of the Foundry, said: “For the Foundry, this marks an important milestone in our exciting journey to launch new digital businesses that drive transformation and growth for EY member firms and create new unique value for EY clients.
The CAAT tool originally came from a team of entrepreneurs led by CEO VJ Anma.
The team developed the platform based on Anma’s experience as a cryptocurrency fund manager. The tool expertly combined new technology with the rigor necessary to meet constantly evolving requirements accurately.
Patel added: “Thanks to VJ’s ingenuity, 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.”
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Michael Meisler, EY tax partner and tax blockchain leader, said: “Technologies such as CAAT can help EY member firms and their clients effectively navigate this analysis. CAAT will allow us to help clients investing in crypto-assets, both in the fund space and beyond.”
Paul Brody, EY’s global innovation leader for blockchain technology, confirmed that the firm plans to integrate the CAAT tool into their Blockchain Analyser portfolio, a collection of blockchain and cryptocurrency transactions audit technologies.
So what does all this mean? Although the scale of this acquisition is currently uncertain, it is definitely a departure from ordinary blockchain activities.