Robinhood Invests in Talos Boosting Institutional Crypto Trading Platform

Robinhood invested in Talos via a Series B extension, valuing the crypto trading platform at about $1.5 billion. Talos raised a $45 million extension.

The move lifted its Series B total to $150 million. New investors include Sony Innovation Fund, IMC, QCP, and Karatage.

Talos serves hundreds of clients in about 35 countries; asset managers on its platform represent roughly $21T in AUM.

Series B Extension Values Talos at $1.5 Billion

Robinhood Markets is participating in an extended Series B funding round for Talos. They are a New York provider of institutional digital asset trading technology. The transaction values Talos at about $1.5 billion, according to a press release on Thursday.

Talos previously raised $105 million in May 2022 in a Series B round that valued the company at $1.25 billion. The additional $45 million increases total Series B proceeds to $150 million.

New strategic investors in the extension include Robinhood Markets, Sony Innovation Fund, IMC, QCP, and Karatage.

The 2022 Series B round was led by General Atlantic. Other participants included BNY, Citi, Wells Fargo Strategic Capital, and DRW Venture Capital, alongside crypto-focused firms SCB 10x and LeadBlock Partners.

Existing backers joined the raise. Andreessen Horowitz, PayPal Ventures, Fidelity Investments, and Castle Island Ventures all participated. Earlier disclosures confirmed their involvement.

The investor group in the extension also includes returning participants a16z crypto, BNY, and Fidelity Investments. Talos Chief Executive Officer and co-founder Anton Katz described the extension as a response to interest from strategic partners.

Robinhood Crypto leadership linked the investment to product delivery for its customer base. The company described Talos as a strategic partner. It said Talos can support liquidity access.

It also emphasized Talos’ role in feature development. Robinhood Crypto customers stand to benefit from this partnership. The investment follows Robinhood’s recent product releases and infrastructure work connected to its digital asset operations.

Talos Provides Institutional Crypto Trading Infrastructure

Talos operates technology used by professional investors, brokers, and banks to access digital asset markets. The platform aggregates liquidity from exchanges. It also connects over-the-counter desks and prime brokers.

It provides tools for trade execution and risk management. Users can handle post-trade settlement through one interface. Talos positions its platform for brokers, banks, and asset managers seeking execution and tools in one system.

The company reports hundreds of clients across about 35 countries. Talos has also reported that traditional finance firms accounted for 60% to 70% of new customers over the past year.

In a November client call with Jefferies, Katz highlighted Talos’ reach. He said asset managers using the platform collectively oversee about $21 trillion in assets. This underscores Talos’ significant role in institutional crypto adoption.

Robinhood Expands Crypto and Blockchain Product Lineup

Robinhood has been building a set of crypto and blockchain services alongside its retail brokerage business. The company is building a blockchain network on Arbitrum. It has launched tokenized stock trading and crypto products in Europe. New offerings include staking and perpetual futures.

Robinhood has also reported growth in prediction markets and increased trading volumes and product engagement in recent results.

The Talos investment expands institutional market infrastructure. It connects liquidity venues and trading tools. This integration supports customer-facing products.

Talos Scales Through Data Expansion

Talos has pursued acquisitions as part of its expansion strategy. The company acquired Coin Metrics for over $100 million. The deal added on-chain analytics, market data, and benchmark indexes. These tools expand its overall product set.

Earlier acquisitions include D3X Systems, Cloudwall, and Skolem. Talos described these transactions as strategic. It builds capabilities across the digital asset trading lifecycle.

It strengthens connectivity for institutions. It improves execution workflows and risk controls. It enhances post-trade processes for participants.