Nasdaq Partners with Talos to Advance Tokenized Collateral
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy NDAQ?
Source: seekingalpha
- Partnership Objective: Nasdaq's collaboration with Talos aims to facilitate the flow of securities and high-quality assets across platforms through a tokenized collateral infrastructure, enhancing market efficiency.
- Capital Release: A Nasdaq report indicates that 25% of collateral is currently trapped in non-interest-bearing measures, representing over $35 billion in excess capital, and this partnership is expected to unlock that trapped capital.
- Risk Management Integration: By connecting Talos' digital asset infrastructure with Nasdaq's Calypso and Trade Surveillance platforms, market participants can manage both on-chain and off-chain collateral workflows in a single environment, streamlining operations.
- Compliance Framework Enhancement: This partnership will also assist financial institutions using the Talos platform in strengthening compliance frameworks, ensuring adherence to evolving regulatory expectations while enhancing overall market integrity.
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Analyst Views on NDAQ
Wall Street analysts forecast NDAQ stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 86.340
Low
101.00
Averages
111.50
High
123.00
Current: 86.340
Low
101.00
Averages
111.50
High
123.00
About NDAQ
Nasdaq, Inc. is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. The Company manages, operates and provides its products and services in three business segments: Capital Access Platforms, Financial Technology and Market Services. Its Capital Access Platforms segment comprises Data & Listing Services, Index and Workflow & Insights. The Financial Technology segment comprises Financial Crime Management Technology, Regulatory Technology and Capital Markets Technology businesses. Its Market Services segment includes its equity derivative trading and clearing, cash equity trading, fixed income, currency and commodities trading. It operates over 19 exchanges across several asset classes, including derivatives, commodities, cash equity, debt, structured products and exchange-traded products (ETPs).
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Partnership Objective: Nasdaq's collaboration with Talos aims to facilitate the flow of securities and high-quality assets across platforms through a tokenized collateral infrastructure, enhancing market efficiency.
- Capital Release: A Nasdaq report indicates that 25% of collateral is currently trapped in non-interest-bearing measures, representing over $35 billion in excess capital, and this partnership is expected to unlock that trapped capital.
- Risk Management Integration: By connecting Talos' digital asset infrastructure with Nasdaq's Calypso and Trade Surveillance platforms, market participants can manage both on-chain and off-chain collateral workflows in a single environment, streamlining operations.
- Compliance Framework Enhancement: This partnership will also assist financial institutions using the Talos platform in strengthening compliance frameworks, ensuring adherence to evolving regulatory expectations while enhancing overall market integrity.
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- Partnership Overview: Nasdaq has partnered with digital asset trading firm Talos to integrate cryptocurrencies into the existing ecosystem used by banks and funds for trading stocks and bonds, enhancing market integration.
- Platform Integration: Talos will connect its crypto platform to Nasdaq's Calypso system, allowing hedge funds, asset managers, and brokers to manage crypto assets in the same manner as traditional investments, streamlining operations and improving trading efficiency.
- Market Implications: The strategic significance of this partnership lies in Nasdaq's preparation for a future of 24/7 trading, further solidifying its leadership position in the fintech sector.
- Stock Market Reaction: Nasdaq's stock rose over 1% in pre-market trading, although retail sentiment on Stocktwits remains in the 'bearish' territory, indicating a cautious market response to the partnership.
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Partnership Announcement: NASDAQ has partnered with Talos to enhance the management of tokenized collateral.
Focus on Asset Markets: The collaboration aims to advance the management of both mainstream and digital asset markets.
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- Approval for Tokenization: The U.S. SEC has approved Nasdaq's proposal to allow certain stocks to be traded and settled in tokenized form, marking a significant step toward mainstream blockchain settlement in equity markets.
- Positive Market Response: Amid easing cryptocurrency regulations under the Trump administration, exchange operators are intensifying efforts to capitalize on the tokenization boom, which is expected to attract more investors to this innovative trading method.
- Initial Scope of Application: Initially, securities eligible for tokenized trading will be limited to stocks in the Russell 1000 Index and exchange-traded funds (ETFs) tracking major benchmarks like the S&P 500 and Nasdaq 100.
- Intensifying Competition: The New York Stock Exchange is also developing a platform for 24/7 trading of tokenized U.S.-listed equities and ETFs, while Coinbase Global plans to launch tokenized equities in December, indicating strong market interest in tokenized trading.
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- Tokenized Trading Approval: The SEC approved Nasdaq's proposal on Wednesday, allowing the trading of certain high-volume stocks like Nvidia and Tesla in tokenized forms, marking a significant shift towards blockchain technology in traditional stock markets.
- Increased Trading Flexibility: Investors can now choose to trade either traditional shares or tokens, all within Nasdaq's existing exchange, enhancing market liquidity and trading convenience.
- Unified Trading Identifiers: Both tokenized and traditional stocks will trade under the same ticker and Cusip number, ensuring interchangeability and simplifying the trading experience for investors.
- Settlement Mechanism Assurance: All trades will settle through the Depository Trust Company, which processes many stock trades, further enhancing transaction security and efficiency while promoting market trust.
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