Cryptocurrencies Now Recognized by Shadow Financial Systems’ ShadowSuite
Shadow Poised for Continued Growth with Addition of Cryptocurrency Asset Support
PISCATAWAY, NJ (October 15, 2018) Shadow Financial Systems announces the native support of cryptocurrency in ShadowSuite®, their multi-currency, multi-asset class reconciliation, clearance, settlement, treasury and accounting system. Utilizing the flexible asset structures in the platform’s framework, Shadow Financial Systems has created a cryptocurrency asset class that is described by Don Marino, Shadow Financial System’s CEO, as a “hybrid currency, in that it has characteristics of a security, where the cost basis of the position is maintained on a purchase or sale, however, it can also be spent like a currency. Unlike a security, however, a cryptocurrency can be used in a trade to buy another cryptocurrency, physical currency or security”
ShadowSuite has the flexibility and capability to now maintain both proprietary and customer positions in cryptocurrency versus a position held in one or many “wallet services” control locations that can be instructed and reconciled through real-time messaging. It will carry “open items” as fails and upon notification of the receipt or delivery of the cryptocurrency, take down the fail.
ShadowSuite supports Blockchain Forks, trade processing and settlement of a position on a continuous 24/7 basis. ShadowSuite is configurable to give good value to a customer account based on the expected settlement date, regardless of whether the position has been received or custody settlement where good value will not be given until actual settlement occurs. Dependent on business practice, customer positions can be applied to the account same day or on a forward value date basis.
As the growing trend of cryptocurrencies continues and news of exchange-traded funds is closer to getting approved by the Securities & Exchange Commission, Shadow Financial Systems is seeing more institutional investors and investment brokerage firms stepping into this market and the potential for a new revenue stream.
About Shadow Financial Systems
Founded in 1997 by industry professionals, Shadow Financial Systems’ technology provides comprehensive post-trade processing, treasury and accounting functionality on a cost-effective SaaS platform for firms that trade securities. Among the Company’s clients are NYSE Arca, Fidelity Clearing and Custody, a Fidelity Investments Company, Société Générale New York Branch, and Raymond James and Associates. More information can be accessed at www.shadowfinancial.com.