The crypto industry’s ‘silent partners’, how Talos is quietly fueling institutional adoption

The crypto industry, often characterized by its loud and flashy personalities, has a quiet but powerful player influencing institutional adoption from the shadows: Talos. Unlike well-known names like Coinbase or Fidelity, Talos serves as a crucial infrastructure provider in the rapidly evolving financial landscape. Recently backed by giants such as Andreessen Horowitz, Coinbase Ventures, and Wells Fargo, Talos has onboarded asset managers responsible for a staggering $18 trillion in assets under management (AUM) in just the past year.

Samar Sen, the Senior Vice President and Head of APAC at Talos, shared this impressive statistic while I attended TOKEN2049 in Dubai. His extensive experience in traditional finance institutions like Goldman Sachs and Deutsche Bank has shaped his understanding of the need to disrupt outdated systems with innovative technology. “Only people who work on the inside of banking can understand how inefficient some of the tech stacks are,” he remarked, pointing to the outdated systems that dominate traditional finance (TradFi).

### Recognizing the Gaps in Traditional Finance

Samar’s transition into the world of crypto wasn’t random. After serving as the Global Head of Digital Products at Deutsche Bank, he recognized the immense transformative potential of blockchain technology. The inefficiencies and sluggishness in TradFi made him realize the urgent need for a modern approach to trading, especially in digital assets.

“I realized that the banks would take a long time to come to market because of regulations and internal compliance upskilling,” Samar explained. There appears to be a stark disconnect between traditional financial firms and the nimble, rapidly growing crypto sector. Institutions seeking to enter the digital asset arena face a language barrier and a lack of professional-grade trading tools, making it difficult to leverage their existing systems for efficient trading.

### Bridging Two Worlds

As the landscape evolved, Samar saw an opportunity at Talos to bridge the gap between TradFi and crypto. His experience allowed him to communicate fluently with both sides—traditional institutions and emerging crypto-native traders. “I could speak to both sides because I’d researched the crypto ecosystem for Deutsche Bank. At the same time, I knew what traditional finance needed in terms of professional-grade tools and tech stacks,” he noted.

Institutional acceptance of cryptocurrency has undergone a significant shift. While major banking figures were once skeptical—Jamie Dimon famously compared Bitcoin to tulips—today, many institutions recognize crypto’s value proposition. According to Samar, the sector has become more resilient over time, particularly after setbacks like the FTX collapse, which prompted regulatory discussions that ultimately strengthened the industry’s foundations.

### Tools for Transition

The challenges for institutions eager to enter the crypto market are numerous. Chief among these challenges is the lack of standardization and technical communication protocols. Talos is stepping in to offer solutions that equip institutional investors with sophisticated tools for connecting to various market players.

“When you are a large firm trading substantial amounts of Bitcoin, you can’t go to a retail exchange and simply drop that order,” Samar explained. Professional tools such as execution management systems and risk management platforms are essential. Talos provides an API that enables firms to communicate effectively and execute trades without disrupting the market.

Additionally, Talos offers a white-label solution that allows existing banks and brokers to integrate crypto trading capabilities into their services. This enables a seamless transition to digital assets without the need for replacing their existing tech infrastructure.

### Institutional Adoption Across Regions

Samar provided insights into how different regions approach institutional adoption. Regulations in places like Europe, Singapore, and Hong Kong are advancing, while the U.S. has lagged behind due to regulatory scrutiny. “The U.S. has been a laggard for a long time because the SEC was going after companies with its regulation-by-enforcement approach,” he stated, noting that the recent change in administration may lead to more favorable conditions for the industry.

Cultural attitudes towards risk-taking also play a significant role. In Asia, where fintech innovations are welcomed, investors are generally more comfortable embracing new technologies, including crypto. “In Asia, many investors are comfortable with leverage and derivatives. They want higher returns and are willing to take risks,” Samar explained.

In contrast, European investors often adopt a more conservative stance, focusing on wealth preservation rather than aggressive growth. As these regional differences continue to shape market dynamics, Samar believes that the U.S. could soon awaken as a “sleeping giant” in the crypto space.

### Future Outlook for Talos

Despite global uncertainties surrounding geopolitical tensions or potential economic downturns, Talos remains optimistic about institutional interest in cryptocurrencies. Samar emphasized that despite market fluctuations, their pipelines for onboarding institutions are stronger than ever.

“The mission at Talos is not just about how much money we can make in this crypto cycle. It’s about recognizing that this technology is transformative and is here to stay. All the banks and investors realize this,” he affirmed. Institutional adoption isn’t a fleeting trend; it represents a long-term commitment to modernizing the financial landscape.

As legacy finance adapts to incorporate the nuances of the crypto world, Talos is quietly establishing itself as a vital partner behind the scenes. This company is shaping the transition into a future where digital assets play an essential role in investment strategies, helping financial institutions navigate this complex terrain one step at a time.

In summary, Talos serves as both a bridge and a silent partner in the crypto revolution, while institutional firms gradually integrate digital assets into their portfolios, demonstrating a long-overdue recognition of the new landscape of finance. The age of crypto is no longer just on the horizon; it’s increasingly becoming an integral part of institutional strategy.

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