In a striking development for the cryptocurrency landscape, Robinhood Markets has made a significant investment in Talos, a leading crypto infrastructure platform, at a staggering valuation of $1.5 billion. This investment represents a substantial vote of confidence in Talos, which recently closed a $45 million extension to its Series B funding round, boosting the total raised to a robust $150 million.
The New York-based Talos, known for its innovative trading solutions, has experienced exponential growth, having doubled both its revenue and client base over the past two years. The platform now serves hundreds of clients across 35 countries, representing a collective $21 trillion in assets under management (AUM).
Robinhood joined an esteemed group of strategic investors that includes the Sony Innovation Fund, alongside returning backers such as a16z crypto, BNY, and Fidelity Investments. This move reflects a growing interest from traditional financial firms in the digital asset space, with an increasing number of these institutions comprising 60% to 70% of Talos’s new customers.
Robinhood’s Strategic Focus on Crypto
Talos’s CEO, Anton Katz, indicated that the Series B extension was prompted by strong interest from strategic partners eager to align closely with the company’s promising growth trajectory. As traditional finance continues to make strides into the digital realm, Talos stands out with its institutional-grade trading infrastructure designed for digital assets.
The platform adeptly pools liquidity from an array of sources, including exchanges, OTC desks, and prime brokers, into a single, user-friendly interface, making it indispensable for asset managers and traders alike.
Enhancing Products and Services
Furthermore, Talos’s growth is not just based on increasing clients and revenue; it is also expanding through strategic acquisitions. In July 2024, the company acquired blockchain analytics firm Coin Metrics for over $100 million, marking its largest deal to date. This acquisition integrated comprehensive on-chain analytics, market data, and benchmarking capabilities into Talos’s offerings.
Previous acquisitions have included D3X Systems, Cloudwall, and Skolem, each contributing to the expansion of Talos’s services. With the latest funding, Talos intends to enhance its product development, focusing on tools for trading, portfolio management, execution, treasury, and settlement, while also gearing up to support tokenized traditional assets.
A Wave of Institutional Interest
The funding success of Talos also comes amid a renewed investment enthusiasm for crypto infrastructure companies. Stripe, for example, secured $500 million in October for its blockchain initiative—Tempo—valued at $5 billion, showcasing the growing demand for robust financial infrastructure within the digital economy.
Notably, Robinhood’s push into the crypto sector is underscored by its recent initiatives, which include launching tokenized stock trading and crypto products in Europe, as well as developing its own blockchain network on Arbitrum. The company’s senior VP and GM of Crypto, Johann Kerbrat, remarked that the partnership with Talos would enhance liquidity and provide advanced features to Robinhood Crypto customers, solidifying the bond between traditional finance and digital innovation.
As Talos continues to grow and evolve, it becomes clear that institutions are increasingly recognizing the value of integrating digital assets into their operations, setting the stage for transformative changes in the financial landscape.
