Does Talos' crypto investment signal growth of institutional investors?

Highlights

• Digital asset trading technology firm Talos has managed to secure a US$1.25 billion valuation after closing a US$105 million Series B funding round.
• The Series B funding round was led by the likes of Wells Fargo, Citi, and BNY Mellon.
• In 2021, Talos managed to US$40 million in Series A funding, which involved the likes of a16z, PayPal, and Fidelity.

Since the start of the year 2022, the crypto market has been rocky. But that hasn’t deterred institutional investors from jumping on the crypto bandwagon to expand their offerings. The prolonged bearish spell witnessed by the market has seen an increasing sell-off from investors. The sell-off pressure saw the market drop to US$1.40 trillion, a decline of 4.35%, in the past 24 hours.

But crypto firms such as Talos have been pitching in big time in the crypto market and have managed to secure a US$1.25-billion valuation after closing a US$105 million Series B funding round, which was led by Wells Fargo, Citi, and BNY Mellon.

As an institutional digital asset trading technology firm, Talos is designed to help the institutions during the entire crypto trade life cycle, such as liquidity sourcing price discovery, transaction cost analysis, etc. The funding also marks Talos's growth over the past year, coupled with the volume growth that the institutional trading has seen in the past few months.

Also read: Terra (Luna) crypto down by over 70%: Will it dip more? 

Inflection points for the crypto industry

For some time now, institutional investors have been the driving force for the crypto industry's growth. With the institutional trading volume increasing over 20 times a year-over-year period, the fundraising is expected to scale up and diversify Talos' offerings into APAC and Europe.

In 2021, Talos had managed to raise US$40 million in Series A funding, which involved the likes of a16z, PayPal, and Fidelity. The latest move reiterates how mainstream financial institutions' interest in traditional finances can increase their digital asset offerings.

Anton Katz, CEO of Talos, said that this funding round also embarks on the growth of institutional investors in the crypto space. He added that the latest funding round represents a significant inflection point for the industry, and institutions are well and truly here, and as a digital assets infrastructure will now have a substantial impact on the financial sector.

Also read: 3 times Bitcoin bounced back after a dip. Is there a ray of hope?

Katz added that this could also open doors for the traditional asset classes to migrate to use these new technologies at a holistic level. 

Conclusion 

Though the fresh investment paints a rosy picture, one also has to understand that crypto markets are often volatile and bring in the risk element with them as well. Therefore, as an investor, it's essential to do a detailed market research and then take an investment call.

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