The duo will collaborate to evolve tokenized collateral management across traditional and digital asset markets.
Nasdaq and Talos have formed a partnership to connect the digital asset infrastructure of Talos with Nasdaq’s Calypso and Trade Surveillance platforms in an effort to develop “an integrated solution for managing tokenized collateral,” officials say.
“The partnership addresses … the challenge of integrating digital assets into existing risk management and collateral workflows,” officials say. “Tokenized collateral—the digital representation of traditional financial assets on distributed ledger technology—enables real-time mobility of securities, cash equivalents, and other high-quality assets across platforms and jurisdictions.”
Talos offers institutional-grade digital asset capabilities “spanning front-office portfolio construction, valuation, and execution through to back-office operations,” officials say. Calypso is a platform to manage risk, margin, and collateral requirements across traditional asset classes.
“Connecting the two platforms offers market participants a path to managing both on- and off-chain collateral workflows in an integrated environment. It also expands institutional connectivity to marketplaces and custodians across both market ecosystems,” officials say.
The programmable approach of the partnership is “a significant opportunity to unlock trapped capital and improve operational efficiency,” officials say. “A recent Nasdaq report found that 25 percent of collateral is currently tied up in corrective and non-interest-bearing measures, representing over $35 billion in excess or non-remunerated collateral. However, capturing this opportunity requires infrastructure that enables institutions to manage tokenized collateral with the same operational rigor and integrated controls applied to mainstream asset classes.”
Through this partnership, Talos clients will gain access to Nasdaq Trade Surveillance, a market-leading platform that detects and investigates potential market abuse across both mainstream and digital asset markets. The platform will enable Talos clients to monitor all trades executed through the Talos platform with the same institutional-grade oversight used by leading exchanges and market participants globally.
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