By Michael Scott
Talos chief executive Anton Katz challenged Wall Street firms enticed into the digital assets ecosystem to consider embracing better connection tools. The chief executive admits that the Wall Street firms should replicate the preference for better connection when they deploy on the capital markets.
Katz supports using connective tools that link them to trading opportunities deployed when pursuing capital markets. His pronouncement coincides with digital asset space attracting buzz as traditional financial institutions (TradFi) portray interest in the sector. In particular, Wall Street’s big players are reevaluating the sector as offering a solid alternative and lucrative asset class.
TradFi Firms Challenged to Integrate Suitable Tools into Crypto Market
Katz mandates that the TradFi firms considering entry into the digital assets should utilize the right applications to realize the coveted rewards. He considers that TradFi firms should prioritize integrating the right applications.
Katz revealed that financial institutions such as hedge funds and banks should prioritize securing tools that enable them to lock the best price at minimal risk. He considers that Talos is suited to create the piping to help the TradFi firms connect to liquidity and familiarity with the capital markets.
Katz admitted that communicating the Talos stance to investors regarding integration into the crypto would attract a small audience. He indicated that Talos is devoted to building the piping and later establishing a layer.
Katz’s pronouncement portrays expertise in building connections involving digital and TradFI firms. The MIT-trained engineer is a natural fit to deliver the piping, given his stint at AQR Capital Management and executive role at Broadway Technology.
Katz partnered with fellow Broadway executive Ethan Feldman to establish Talos in 2018. The Talos trading platform facilitates the connection of institutional investors with the opportunities emerging within digital assets.
Creating the plumbing for the TradFi clients is critical, particularly when the digital asset space is experiencing institutionalization. He considers that high-profile failures, including FTX and Terra, are not slowing the institutionalization. Firms are attracted by the heightened scrutiny by the regulatory agencies.
The Talos’ executive indicated that the protections that institutional investors desire before committing participation in crypto have parallels one could import. He added that the transitional events often feature conversational debates where individuals restate the need for additional protection.
TradFi Firms Portraying Cautious Involvement in Crypto Market
He observed that the capital market often portrays the preparedness born from years of mistakes. He adds that the years of bad decisions and practices prompted corrective input to deliver the present safety ecosystem.
TradFi Firms have in the past exercised a cautious involvement in crypto markets. They often cited the uncertainty caused by the wild market swings and fear of falling afoul of the regulator’s crackdown. Katz assured the TradFi firms that the Talos platform would connect them to the established network of service providers, including Kraken and Coinbase, ready to overcome such worries.
Katz observes emerging recognition of the crypto market as holding the potential to reward Wall Street. Such is evident in BlackRock’s move to file for the spot market Bitcoin exchange-traded fund (ETF). The submission by the world’s largest asset manager in June triggered a wave of applications from ARK Invest, Fidelity, Galaxy Digital, Bitwise Asset Management, WisdomTree, VanEck, Invesco, and Valkyrie.
Talos unveiled partnering with the Wall Street-backed EDX Markets last month. The crypto exchange users will access Talos’ network providers using a front-end system.
Talos CEO Revisits Huge Potential in Digital Assets
Katz dismissed the perception that digital assets constitute a down market. Instead, he rallied firms to leverage the opportunity to create the necessary market infrastructure to incentivize more TradiFi players into the ecosystem.
Katz illustrated that Talos is attracting sell-side firms, including banks, within its platform. He considered such firms as players who seek entry when underlying demand arises.
Katz considers the recent ETF filings a positive sign that the demand for digital assets will not subside. He confessed that crypto is an infant market though evolving fast. He added that the recent development portrays the likelihood of a big contender emerging within the institutional landscape.