We are thrilled to announce the ‘DIAx’ index family. Launched in cooperation with Morningstar Indexes, DIAx indexes provide transparent and regulatory compliant performance measures for individual digital assets and baskets of assets.
Nov 25, 2021
We are thrilled to announce, together with global benchmark provider Morningstar Indexes (part of Morningstar, Inc.), the release of ‘DIAx’ — regulatory compliant reference prices and indexes that will enable investors to benchmark and access digital assets via traditional markets.
Reference Prices and Indexes
The DIAx family initially comprises benchmark reference prices and indexes measuring the price of individual digital assets, including Bitcoin (DIAxBTC), DIA (DIAxDIA) and the DIA Metaverse Index (DIAxMVI) measuring the performance of a basket of tokens representing companies building Metaverse technology. Over time, the family will expand to include baskets of other digital assets and other measures such as digital asset volatility.
Each price and index is designed to enable safe and frictionless access to the digital asset space for traditional investors . DIAx reference price feeds are compliant with both the IOSCO Principles for Financial Benchmarks and the UK & EU Benchmarks Regulations .
The family will expand to include baskets of other assets and measures such as digital asset volatility.
Open-Source, Decentralised and Transparent Price Feeds
To provide the data used to calculate the indexes, DIA price data is sourced at individual trade-level from a range of centralised and decentralised exchanges and across all asset classes . Centralised exchanges such as Coinbase or Nasdaq provide transactional data directly from internal servers via dedicated APIs after going through centralised verification and security processes. In contrast, decentralised exchanges like Uniswap enable trading through peer-to-peer transactions, which are computed, stored and verified publicly on a blockchain.
DIAx Indexes leverage both data types to provide holistic price computations that fully reflect the fragmented digital asset trading space . The sources and computational methodologies for DIAx indexes’ underlying data feeds are fully transparent and available open-source.
Bridges to the Digital Asset Market
The digital assets market, currently estimated at USD 2.9 trillion, continues to grow. The rapid expansion of this new asset class in recent years is drawing increased attention and interest from both regulators and traditional investment players creating investment products to access a non-crypto native target group. Trusted and regulated digital asset benchmarks will act as one of the critical building blocks in creating these bridges, as they enable regulated access to digital assets.
Michael Weber , DIA Association’s Founder says:
“In the past two years, decentralised finance applications have shown that they can attract capital and provide value. While we’ve seen very strong growth, the size of the market is still tiny compared to the traditional financial space. Products like DIAx enable safe and regulated investment access for capital to flow to the digital asset space. We are thrilled to collaborate with Morningstar Indexes to provide their benchmark expertise.”
Head of Morningstar Indexes Europe Tobias Sproehnle comments:
“We are excited to work with DIA to help them deliver high quality and efficient tools for investors to access a broad range of markets, from established to emerging areas such as digital assets.”