Institutional-grade crypto accounting platform Cryptio has partnered with the company behind Filecoin, Protocol Labs, to help Filecoin miners meet audit obligations – an important factor for companies looking to go public.
Filecoin, which functions as a decentralized storage marketplace, allows users to rent out spare storage on their computer and rewards network participants who help with storing files or retrieving them.
Cryptio’s software helps crypto companies with accounting, audit and tax software. The company will now allow Filecoin miners to extract auditable transaction logs from its chain, according to a press release.
Filecoin miners, which are the storage providers for the protocol, will be able to generate accounting reports needed to pass their public company accounting oversight board (PCAOB) financial audits, the press release said.
There are currently over 4,000 storage providers (SP) on the Filecoin network, according to the company’s website.
“Miners can now import all on-chain activity from Filecoin and complete accounting, reporting, tax, and audit preparation to the high standard required by auditors and regulators,” said the press release.
For bitcoin, the world’s largest cryptocurrency by market value, a number of mining companies of the cryptocurrency are listed on public stock exchanges, Marathon Digital (MARA) and Riot Platform (RIOT) to name a few. The publicly traded bitcoin miners have seen a massive exodus from investors during the recent crypto winter, which included a slump in bitcoin prices and rise in energy costs for the mining companies.
There are not many dedicated Filecoin miners that are currently publicly traded. Whether there is an investor appetite for more miners, particularly for Filecoin storage providers, also remains to be seen.
However, Cryptio remains committed to providing the accounting service, whether a miner decides to go public or not.
“Filecoin is a very complex chain and hard to ‘index,’ unlike Bitcoin,” said Hemant Pandit, head of revenue at Cryptio. “Cryptio has built this financial infrastructure that allows them to do their accounting and reporting in an auditable way, whether Filecoin miners want to go public or not.”
Of course, having accounting reports is not the only step for a private company to go public, but the software aims to help the miners with one crucial step towards a potential public listing. “It was difficult to go public without this infrastructure. The [Securities and Exchange Commission] has higher audit standards for public companies. There have been large Filecoin miners (en route to going public) who were blocked by this previously,” he added.
Cryptio currently provides accounting infrastructure for more that 300 enterprises including MetaMask, 1inch and Chivo across 12 blockchains including Ethereum and Bitcoin.