In the latest attempt to pave the way for button-down investors, Talos, an institutional-level channel targeting the crypto ecosystem, is stepping out of stealth mode to serve brokers, custodians, exchanges and over-the-counter (OTC) trading desks. .
Talos
The Talos platform was born in 2018 and is supported by an impressive list of investors including Autonomous Partners, Castle Island Ventures, Coinbase Ventures, Bitcoin system and Initialized Capital.
Anton Katz, co-founder and CEO of the company, said in an interview: “It's not that we were really hiding, it's just that we come from a capital markets background and would tend to shy away from talking about anything before is ready ".
"Now I think we have reached a good point, we work with a good group of clients and the platform is in a more mature state." Talos provides tools to support clients through the entire trading lifecycle, from price discovery to clearing and settlement, the company said.
"One of the most important keys to widespread institutional adoption of digital resources is a technological infrastructure that unites all market participants and gives them the confidence to operate on a large scale," Arianna Simpson, founder of Autonomous, said in a statement. Partners. "This is exactly what Talos has built and we are thrilled to help them realize their ambitious launch and growth plans."
Institutional clients
There has been a lot of talk in the past couple of years about an institutional group that is rapidly shifting towards cryptocurrencies. “I think it's important to keep in mind that the institutional sector doesn't have an on / off switch,” Katz said.
“It's not like they're in or out. There are really a couple of different groups of institutions, some are a little more risk averse, some less, and what we're seeing right now is that those who are least risk averse are becoming early adopters. "
The design requirements for crypto platforms are quite different from regular capital markets, Katz explained. From a pre-trade point of view, compared to capital markets, the data collected for cryptocurrencies is much less reliable and needs to be taken in multiple places and analyzed properly.
In terms of trading there are things like treasury management, then moving capital between different exchanges, which again is something that doesn't really exist in the capital markets.
While on the post-trade side, capital markets are much safer and standardized. “I would say you don't have to be defensive when building your platforms in the capital markets like you do with cryptocurrencies,” Katz said. "The precision you need in every single operation requires a completely different system design."
