Talos, the provider of institutional technology and data for digital asset trading and portfolio management, announced the integration of its order and execution management system (OEMS) with Aladdin, which is BlackRock’s tech platform that unifies the investment management process.
Together, Talos and BlackRock’s Aladdin will now aim to unlock operational improvements within cryptoasset order management, enabling greater efficiency and resiliency across the investment management process.
This integration enables BlackRock traders to route cryptoasset orders to the Talos OEMS, allowing them to access Talos’s suite of algorithms, smart order routing, expansive market connectivity as well as post-trade reporting.
Order and execution information flows between the platforms, allowing traders to more effectively manage workflows in real time.
Dan Veiner, Head of Markets at BlackRock said:
“Digital assets are a growing part of the investment landscape, and we’re building the infrastructure to keep pace with investor interest and demand. Integrating Talos into Whole Portfolio applications on the Aladdin platform enables us to expand and further automate our crypto trading capabilities. Talos’s crypto-native technology strengthens our execution capabilities now, ensuring we’re ready to meet future client demand with greater efficiency, liquidity access, and execution quality.”
The addition of Talos’s trading tech adds institutional tools, and offers access within Talos’s network, including centralized exchanges and decentralized (DeFi) protocols, along with OTC dealers.
The connection supports multiple execution strategies.
Traders may now run algorithmic strategies like volume-weighted average price (VWAP) along with time-weighted average price (TWAP).
They are now also able to leverage request-for-quote (RFQ) workflows, which allow for competitive pricing from various OTC dealers.
Talos’s RFQ functionality, built “explicitly for BlackRock’s crypto ETP create/redeem process, is important for sourcing institutional liquidity at scale.”
The same RFQ process can now be used “more broadly for trading of digital assets.”
Anton Katz, CEO and Co-Founder of Talos said:
“Connecting the Aladdin platform with Talos is a direct reflection of the state of institutional adoption of digital assets. Through this integration, we’re excited to expand access for institutions at a time of unprecedented interest in digital assets. As large, traditional firms move from exploration to execution on their digital asset strategies, they expect the same level of sophistication they’re accustomed to in traditional markets. Through this integration, BlackRock can now access that standard directly within their existing workflows.”
This latest partnership aims to lay the foundation for potential enhancements in the foreseeable future.
Talos also mentioned that it offers a fully integrated trading and portfolio management system for digital assets, which reportedly includes portfolio construction as well as optimization tools.