Get the latest tech news
Formance – The Color of Money: Towards a New Data Model for Fintech, Part II
Explore why classical accounting's assumption of full fungibility falls short for modern fintechs and how more nuanced approach can revolutionize the way we track the identity of funds within a ledgering system.
But the key lesson of the Synapse collapse is that the ability to track this information is critical to the stability of the fintech world. The color of money is a very powerful tool that opens the possibility of answering fine-grained questions about the specific relationships between assets and liabilities and how they are connected. But taking cues from the industry issues that surfaced in the last couple of months, we make the case that fintechs need to be able to answer more detailed questions about how assets and liabilities are precisely connected.
Or read this on Hacker News
