Talos, a technology provider for institutional digital asset trading, has launched a new feature on its platform, which allows its clients to define and trade synthetic pairs that include FX and cryptocurrencies.
As a result, Talos clients can now trade or price in pairs such as BTC-EUR by automatically combining FX (e.g. EUR-USD) and digital assets (e.g. BTC-USD) to achieve a cross rate with a more spread. narrow.
Reduced risk and better margins
Non-U.S. Clients looking to trade between their local currency and cryptocurrencies will typically encounter wider spreads, if any. This forces them to trade via more liquid pairs like BTC-USD. The new Talos feature greatly simplifies the FX part, reducing the operational burden and associated market risk for such scenarios and greatly improving execution costs.
“Digital assets are traded around the world by both the retail sector and institutions, but most of the liquidity remains in USD-denominated pairs,” says Anton Katz, co-founder and CEO of Talos. "Given the rapidly growing number of non-US institutional clients we are witnessing, the ability to seamlessly trade from any fiat currency to any cryptocurrency should significantly reduce trading costs and bring additional international players to our platform."
A single cross-rate price
By combining FX and digital assets, Talos offers an efficient end-to-end solution that actually delivers a investor direct access to a global pool of both FX and crypto liquidity, as well as the ability to move efficiently from one asset to another. Additionally, through Talos' digital asset trading platform, investors can see all active trading counterparties along with available quantities on all supported FX and synthetic markets. Using the platform's FX capabilities, the system will come at a single cross-rate price based on the required quantity and then execute both the FX and crypto components of the transaction at the same time.
Katz adds, “We believe the rise of initiatives like DeFi, Central Bank Digital Currencies and the tokenization of traditional asset classes will benefit from a unified technology that supports them all. The addition of the synthetic crossing functionality is another example of our commitment to help institutions interact with this new world through a familiar lens ”.
Publicly launched in early October after a year of live trading with clients, the Talos platform is built exclusively to support end-to-end trading of digital assets - from onboarding to price discovery, execution and settlement - including l '' bilateral access to liquidity providers. Talos offers solutions to meet the needs of both investors and financial service providers, including prime brokers, OTC liquidity providers, lenders, custodians and exchanges. Customers access the Talos platform via API or GUI and it is highly configurable for their unique workflow requirements.
