Digital Asset Infrastructure and Solutions to Drive Institutional Adoption and Scalability

At Consensus 2025 in Toronto, Tim Kwok, Head of Sales for the Americas at Talos, joined Nasdaq’s Jill Malandrino on TradeTalks to discuss the evolving infrastructure of digital asset markets and the pathways to institutional adoption. The conversation offered a snapshot of how financial institutions are navigating the complex journey into digital assets—focusing on compliance, operational infrastructure and the regulatory horizon.

Watch the broadcast interview

Institutions need infrastructure, not just exposure

Tim emphasized that institutional interest in crypto is no longer just about speculative exposure—it’s about integrating digital assets into existing workflows. “They may not be crypto native,” he noted. “They trade equities, fixed income… now they want to look at their broad-based exposure, inclusive of their spot crypto exposure.”

Talos is meeting these demands by offering robust compliance, risk, and operational tools. Tim underscored that for large institutions, these tools are “table stakes” and not optional. “There needs to be risk control, who your counterparties are… that is what they care about on top of just investing in the asset in and of itself.”

Where the growth is happening: global highlights

Tim walked through regional trends in digital asset growth:

• United States: A leading market driven by relatively favorable regulatory shifts.
• Canada: Growing involvement from retail brokers, some spinning off crypto-focused arms.
• Latin America: Innovation centered on stablecoins and tokenized assets.
• Southeast Asia: A vibrant ecosystem where digital assets support microeconomies, e-commerce, and alternative capital formation.
  

“These technologies are already being used,” Tim pointed out. “Everyone is familiar with FX, and stablecoins are just an extension of that. That’s the workflow being worked on now.”

The backbone: risk engines and operational tools

When asked about how market infrastructure is evolving to meet global demand, Tim highlighted the importance of operational integrity. While “execution tools like best execution and smart order routing” are well-developed—areas where Talos excels—it’s the operational parts of the stack, like compliance and risk engines, that now need to mature for widespread adoption.

He likened the transition to a “zero-to-one moment,” where operational tools must reach institutional-grade maturity for large asset managers to get comfortable.

Advantage to crypto-native firms

Institutions that started with crypto have an advantage: agility. “You’re a lot more nimble,” said Tim, “you can do everything in one place.” Traditional firms, by contrast, face challenges in integrating new asset classes into legacy systems. Still, demand is rising for portfolio-wide risk tools that help firms assess crypto side-by-side with traditional assets like bonds and equities.

Clarity and catalysts: the regulatory outlook

On the regulatory front, Tim reinforced that clarity is crucial for institutional participation. “Most folks won’t move until they get that absolute clarity,” he said, although some more forward-leaning firms have already made their move. He cited the ETF approvals in 2024 as a watershed moment: “Now people are educated, and we’ve come a long way in terms of understanding how this market works.”

Looking ahead

The tone of the conversation was optimistic yet grounded. Tim made clear that adoption is not instant—“like moving a battleship”—but the infrastructure, tools, and regulatory clarity are increasingly aligning.

“It’s not just about the asset anymore,” said Tim. “It’s about building a system where institutions can operate with the same confidence they have in traditional markets.”