Nasdaq and Talos join forces to build infrastructure for asset tokenization

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Nasdaq links TradFi with blockchain

Integration of TradFi and crypto infrastructure

A key element of the collaboration will be the integration of Nasdaq Calypso and its trade surveillance system into Talos products. This will enable institutions to manage collateral, risk, and trading within a single framework — without separating “traditional” and “digital” assets.

According to Nasdaq estimates, around $35 billion in collateral is currently used inefficiently. The new model is expected to improve capital efficiency and simplify settlement processes, both on-chain and off-chain.

Special focus is placed on trade monitoring. Talos users will receive alerts on suspicious activity — from wash trading to spoofing. The companies aim to bring digital asset markets closer to standards seen in traditional finance.

“The turning point is when institutions can engage digital markets… using the same operational rigor and efficiency,” said Nasdaq’s Roland Chai.

Tokenization and regulatory challenges

The launch comes amid gradual regulatory changes. The SEC has already approved several initiatives related to tokenized securities, including pilot programs involving large-cap equities and ETFs.

However, the broader environment remains mixed. The industry still recalls incidents such as wash trading on Coinsquare and the collapse of FTX, which exposed weaknesses in risk management. According to Chainalysis, illicit crypto activity reached nearly $51 billion in 2024.

Regulatory uncertainty in the U.S. remains a key challenge. The CLARITY Act is still pending, while debates around stablecoin yields continue to delay progress.

What it means for the market

For institutional players, fragmented infrastructure remains a major obstacle. Separate systems for crypto and traditional assets, along with limited visibility, make risk management more complex.

Talos highlights this issue directly: “You can’t manage risks you can’t see,” said Kyle Downey. Bringing data and workflows together could become a core element of institutional infrastructure.

Nasdaq is also advancing tokenization through other initiatives. The company is working with Kraken via its parent Payward and Backed, which issues tokenized equities under the xStocks brand. The goal is to build infrastructure where traditional financial instruments and blockchain operate within a single system, without dividing markets into separate models.

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