Operational Due Diligence on Digital Assets
Institutional allocators conduct operational due diligence (ODD) on the underlying managers and funds that they invest in, including on elements such as counterparties, valuation, and conflicts of interest.
The SBAI’s Alternative Investment Standards help asset managers apply the required controls to satisfy an ODD process and specific standards are referenced throughout this memo.
This SBAI Toolbox memo looks at:
- Key areas of ODD for digital assets, including custody, trade processes, valuation and asset verification, conflicts of interest, and regulatory risk.
- Other ODD considerations including a brief look at digital assets and responsible investment.
The appendices contain a list of ODD questions for investors to ask and a glossary of common digital asset terms.