The dawn of web3 not only allowed for new financial innovation but also an alternative for us to think about new ways to earn.
While this may be amicable to retail investors, institutions now want a slice of the pie, and they are coming in with a big appetite.
We had the opportunity to talk to Pamela Lee, the APAC Head of Sales and Business Development for Talos to uncover the current and future landscape for institutions.
Talos serving institutions
Talos is a platform which aims to deliver institutional-grade infrastructure for digital assets trading.
On top of providing access to institutional players such as hedge funds, asset managers and family offices, Talos also has solutions catering to exchanges, wallets and payment service providers.
“The idea behind it is to give an umbrella of tools that people use to interact with equities and FX the same way they can interact with crypto.”
With a strong background in the capital markets, Talos will bring familiarity with a high level of safety and resiliency against the volatile nature of crypto, especially on the institutional level.
In May 2022, Talos announced a $105 million Series B funding round with a valuation of $1.25B led by led by global growth equity firm General Atlantic and other veteran investors in both the traditional finance and digital asset spaces.
Find out more about the solutions Talos provide and request a demo here.
Changing the landscape for institutions
Especially in crypto, verticals are likely to be fragmented. Taking trading for institutions as an example, there need to be the right custody solutions to work with on top of finding the right liquidity providers.
Talos changes that by providing a single point of access for aggregating the best execution such as aggregating all the liquidity across exchanges and OTC dealers.
In terms of operational risks, clients are able to manage transfers, look at funding balances to even treasury management across various accounts.
While there are future roadmaps installed they are building such as in the borrowing and lending marketplace and new risk management tools, they utilize a feedback loop from existing clients to bolster the usability of its platform.
Institutions having a slice of the pie
“Institutions tends to have a longer-term market horizon and understand the cyclical movements of the market.”
Especially amidst the bear market, it gives an additional incentive for institutional players to get in, now more than ever. The stats alone for Talos seeing the “biggest quarter in terms of closed contracts” reveals the growing appetite by institutions getting into the space.
We all know the bear market is the best time to build, and now, with time on their hands, “institutions can now achieve some of the expectations and standards they want the market to be.”
Challenges the crypto market faces
The first thing that came to Pamela’s mind was risk management. Especially with the meltdown of Terra Luna this year, differentiating between the “signals between noise and facts” could be the biggest lesson this year.
Unlike the FX markets and Equities which started out with institutions, “Crypto started from the retail,” but that would also mean the owners of responsibility are barred by them.
“As a retail investor, you need to do your due diligence before making any investment decisions.”
Find out more about the other things Pamela is doing in the space with Talos in the video below.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief