Ernst & Young acquires cryptocurrency tech
Ernst & Young has acquired cryptocurrency technology and patents from Elevated Consciousness, a San Francisco-based startup that focuses on digital currency.
EY is acquiring the technology for the Andy Crypto-Asset Accounting and Tax (CAAT) tool, which connects with multiple cryptocurrency exchanges and wallets to provide better visibility into cryptocurrency transactions and inventory.
Financial terms of the deal were not disclosed. The acquisition was led by the EY Americas Tax Innovation Foundry and is part of EY’s strategy to expand the firm’s blockchain-related capabilities and services worldwide and position it as a leader in cryptocurrency accounting and tax.
“Cryptocurrencies and blockchain are transformational forces with a strong potential to fundamentally change the way business is done,” said EY global vice chair of tax services Kate Barton in a statement. “CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment.”
The EY Americas Tax Innovation Foundry is trying to build new businesses that will allow EY’s member firms to offer innovative digital technology to clients. The CAAT tool was developed by a group of Silicon Valley entrepreneurs led by VJ Anma, who developed the technology based on his experience as a cryptocurrency fund manager.
“Numerous firms are interested in technology around cryptocurrencies like CAAT, but the unparalleled entrepreneurial know-how and experience that the Foundry offers is what attracted us to the EY organization,” said Anma in a statement. “The organization is positioned to be a leader in the blockchain and crypto-asset space. My team and I are excited to support EY as the technology is taken to the next level.”