Talos, a technology provider for the institutional trading of digital assets, announced a new feature on its platform that allows its clients to define and trade synthetic pairs that include FX and crypto “legs.” As a result, Talos’s clients can now trade or provide prices in pairs like BTC-EUR by automatically combining the FX (ex. EUR-USD) and the digital asset (ex. BTC-USD) legs to derive a cross rate with a tighter spread.
Non-US clients looking to trade between their home currency and crypto will typically encounter wider – if any – spreads. This forces them to trade via more liquid pairs like BTC-USD. Talos’s new functionality significantly streamlines the FX leg, reducing the operational burden and the associated market risk for such scenarios and improving execution costs considerably.
“Digital assets are traded worldwide by the retail sector and institutions alike, but the majority of the liquidity remains in USD-denominated pairs,” said Anton Katz, co-founder and CEO of Talos. “Given the rapidly increasing number of non-US institutional clients we’re now seeing, the ability to trade seamlessly from any fiat currency to any cryptocurrency should significantly reduce trading costs and bring further international players to our platform.”