Leading Digital Asset Custodian Expands to Offer Trading Services

The Company

The Talos client in this case is a fully-licensed digital asset custodian that provides solutions for protocols, foundations, financial institutions, and the Web3 ecosystem. With offices in EMEA and Asia Pacific, the company offers institutional-grade access to custody, DeFi, brokerage, and other services - built on regulated infrastructure.

The Challenge

The client is a leading provider of institutional-grade custody and security solutions for digital assets. With the increasing popularity and regulated nature of their custody business, there was a need for the client to be able to achieve:

• Best execution against deep and fragmented liquidity across leading exchanges and liquidity providers;
• Efficient trade settlement across a wide range of cryptocurrencies and fiat;
• Support for broad trading strategies across spot and margin markets; and
• Improved access to the market in a secure and regulated manner for their end customers.

The client needed a technology provider who could immediately meet their high standard for service, but also help them build a solution for the future. Lastly, they were  looking to achieve all of this while minimizing time to market.

The Solution

After a thorough evaluation process, the custodian selected Talos as their key technology partner. Talos’s out-of-the box connectivity to the marketplace would enable them to face the market quickly, in an efficient and scalable manner.

As part of the solution, Talos would also integrate with the custody platform for real-time visibility of assets to enable customer risk management. This integration would also make treasury management and settlement workflows fully automated while providing the flexibility of manual intervention when needed.

Talos’s White Label GUI and API would be set up to power quick and easy market access for the client's customers in a secure manner while ensuring real-time compliance and risk checks.

The Results

With a secure and scalable single point of access to the digital asset market, this client was able to refocus their engineering resources towards enhancing their custody solution and building products to improve their customer proposition. 

Their trading team has been able to cut costs and to demonstrate best execution through the use of Talos’s client-driven algorithmic execution strategies and transaction cost analysis (TCA). In addition, execution analytics on the platform can be used for audit and compliance reporting.

The integrated custody solution from Talos provided the client's customers with a real-time view of their assets and allowed them to trade directly from their custodial wallets. The ledgering and position management functionality within Talos ensured smooth reconciliation and settlement process, saving valuable time for the the client's operations team.

Lastly, Talos’s institutional grade-infrastructure and resilience enabled the client to offer a seamless 24/7 trading service to their customers, strengthening their position as a leading provider in the digital assets space.

“We always strive to provide our customers easy and secure access to the digital assets market,” said one senior division head. “Given the fast-paced nature of the industry, speed in bringing the latest technology to market is the key to staying ahead of the curve. Partnering with Talos helped us to streamline trading, streamline end-to-end customer workflows, and position ourselves as a market leader.”

“We are proud that this custodian chose Talos to support their digital asset business ambitions,” said Samar Sen, Head of APAC at Talos. “Their experience is a testament to how a service provider or sell-side institution can leverage the broad capabilities of the Talos platform – to connect efficiently to the digital asset ecosystem, orchestrate complex workflows, manage executions with advanced tools, and provide trading services to their end customers.” 

The Future

As institutional participation in the digital assets market continues to gain pace, so will the sophistication demanded by this client's end customers. Through a deeper integration with Talos, the client plans to offer an out-of-the-box custody-plus-trading solution to institutions, or they can offer their liquidity and custody services in a modular fashion depending on what's needed by the institution.

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^{Disclaimer: Talos Global, Inc. and its affiliates (“Talos”) offer software-as-a-service products that provide connectivity tools for institutional clients. Talos does not provide clients with any pre-negotiated arrangements with liquidity providers or other parties. Clients are required to independently negotiate arrangements with liquidity providers and other parties bilaterally. Talos is not party to any of these arrangements. Services and venues may not be available in all jurisdictions. For information about which services are available in your jurisdiction, please reach out to your sales representative. Talos is not is not an investment advisor or broker/dealer. This document and information do not constitute an offer to buy or sell, or a promotion or recommendation of, any digital asset, security, derivative, commodity, financial instrument or product or trading strategy. This document and information are not intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. This document and information are subject to change without notice. It is provided only for general informational, illustrative, and/or marketing purposes, or in connection with exploratory conversations with institutional investors and is not intended for retail clients. The information provided was obtained from sources believed to be reliable at the time of preparation, however Talos makes no representation as to its accuracy, suitability, non-infringement of third-party rights, or otherwise. Talos disclaims all liability, expenses, or costs arising from or connected with the information provided.}