Nasdaq is set to integrate its Calypso risk and collateral platform, along with its trade surveillance system, with the institutional trading infrastructure of Talos.
Announced Monday, the integration is designed to give institutional clients a unified workflow for managing tokenized collateral while monitoring both crypto and traditional markets for potential abuse. Nasdaq said the move aims to address a key bottleneck in tokenization, noting that around $35 billion in collateral is currently tied up in non-interest-bearing or corrective processes.
By incorporating Nasdaq’s surveillance tools, Talos users will be able to detect suspicious trading behaviors—such as wash trading, spoofing, and layering—across multiple venues. The partnership is intended to bring institutional-grade compliance and oversight to digital asset markets.
Industry track record underscores need for safeguards
The initiative comes against a backdrop of past misconduct in crypto markets. In 2020, Coinsquare admitted to inflating trading volumes through wash trades, which made up over 90% of its reported activity, leading to a settlement with the Ontario Securities Commission and executive departures.
In 2022, the collapse of FTX exposed major failures in risk controls, including what regulators described as preferential treatment and unchecked credit access for affiliated entities.
More recently, Chainalysis reported in January 2025 that manipulative practices like wash trading and pump-and-dump schemes still account for significant activity in decentralized finance, with illicit crypto volumes nearing $51 billion in 2024.
Part of a wider tokenization push
The partnership reflects a broader industry shift toward tokenization among institutional players. Talos, whose client base includes hedge funds and brokers, expanded its Series B funding by $45 million in January, bringing the total to $150 million at an approximate $1.5 billion valuation.
Its backers include Robinhood Markets and BNY, underscoring growing institutional interest in digital asset infrastructure.
The Nasdaq initiative comes as Larry Fink, chief executive of BlackRock, told shareholders in his 2026 annual letter that tokenization is “updating the plumbing of the financial system.” He compared its current stage to the early internet era of 1996, suggesting blockchain-based asset representations could expand market access and reduce costs.
Nasdaq and Talos are part of a broader industry push. Intercontinental Exchange—owner of the New York Stock Exchange—is developing a blockchain platform for round-the-clock trading of tokenized stocks and ETFs.
Meanwhile, Franklin Templeton is expanding its tokenized US government money market funds and institutional collateral programs, further signaling growing momentum behind tokenization across global finance.
