Nasdaq & Talos Unlock $35B in Collateral Through Crypto Tokenization

Nasdaq’s trading platform Calypso is teaming up with cryptocurrency infrastructure provider Talos to launch a tokenized collateral solution and bridge the gap between traditional finance and cryptocurrencies.

The move will free up more than $35 billion in idle liquidity and enable institutions to streamline off-chain and on-chain trading for faster and cheaper settlements.

Nasdaq and crypto unite

This development comes after the March 18 approval by the US Securities and Exchange Commission (SEC) for eligible securities to be traded as regulated blockchain-based tokens.

The pilot program focuses on large market-cap stocks such as those within the Russell 1000 index, and major ETFs tracking the Nasdaq-100 and the S&P 500.

The Nasdaq-Talos collaboration will now bridge conventional and digital asset infrastructure, fostering institutional adoption all while boosting liquidity.

Most community members express optimism about the news, noting that the TradFi and crypto convergence could unify trade-associated workflows.

Nonetheless, whether such exploits prove beneficial and profitable in the long-term is dependent on future regulatory policies.

One of the biggest regulatory hurdles has been the passage of the CLARITY Act, which remains stalled in the Senate due to bankers’ disputes over stablecoin yield. 

The most recent development is the proposal by Trump and several senators to permit activity-based rewards on stablecoins while banning passive yields on the same.

Analysts warn that signing the bill into law could be further delayed if it does not pass the Senate by the end of April. Here, they cite the upcoming November midterm elections, which could take focus away from the bill.

Institutions’ adoption of blockchain technology

This month, Nasdaq partnered with crypto exchange Kraken to tokenize its stocks pending SEC approval. 

Additionally, both Nasdaq and the New York Stock Exchange (NYSE) are shifting to 24/7 trading through the development of blockchain-based tokenized securities.

Meanwhile, payments provider Stripe plans to enable global stablecoin payments following the launch of its Tempo blockchain by the end of the month.