Talos, a leading provider of institutional trading technology for digital assets, has announced its acquisition of Coin Metrics, a prominent data company specializing in crypto market data and blockchain analytics. The deal, reportedly valued at over $100 million, marks the largest acquisition in Talos's history. This strategic move aims to create the industry's first integrated data and investment management platform for digital assets, offering a comprehensive solution for institutional clients.
The acquisition aligns with Talos's strategy to build a "one-stop shop" for institutions navigating the digital asset landscape. By incorporating Coin Metrics' extensive crypto market data, blockchain analytics, and benchmark indexes into Talos's unified order and execution management system (OEMS) and portfolio management system (PMS), the combined platform will streamline the entire investment lifecycle. This includes trading, portfolio management, market data, on-chain analytics, and portfolio construction.
According to Talos CEO and Co-Founder Anton Katz, bringing the two platforms together will benefit clients by creating a fully integrated solution. Institutions are increasingly seeking support for the entire digital asset investment lifecycle, and the combined expertise of Talos and Coin Metrics will deliver a uniquely powerful platform. Tim Rice, CEO and Co-Founder of Coin Metrics, echoed this sentiment, stating that joining forces with Talos represents an exciting next chapter for Coin Metrics.
The acquisition reflects a growing trend of consolidation within the cryptocurrency industry, driven by the need for innovation and the desire to capture market share. Recent high-profile deals, such as Coinbase's acquisition of Deribit and Kraken's purchase of NinjaTrader, exemplify this trend. Talos's acquisition of Coin Metrics further underscores the increasing importance of data and analytics in the maturing crypto market.
Talos, founded in 2020, provides a comprehensive suite of crypto-related solutions for institutional clients, including liquidity sourcing, price discovery, trading, payment settlements, and portfolio management services. The company's platform securely integrates with preferred prime brokers, exchanges, OTC desks, and lenders, allowing clients to manage their digital asset ecosystem from a single entry point. Talos's previous acquisitions include Skolem, a DeFi infrastructure provider, Cloudwall, a risk management platform, and D3X, a portfolio engineering firm. Talos was valued at $1.25 billion in 2022 after raising $105 million in Series B funding. Investors include Citibank, Andreessen Horowitz, Wells Fargo Strategic Capital, BNY Mellon, PayPal Ventures, Castle Island Ventures, and Fidelity Investments.
Coin Metrics, founded in 2017, is a leading provider of crypto financial intelligence, offering extensive crypto market data, blockchain analytics, and benchmark indexes. The company's data and analytics are trusted by many of the largest global financial institutions. Coin Metrics previously raised $35 million in a 2022 funding round led by BNY Mellon and Acrew Capital, with additional support from Goldman Sachs, Brevan Howard Digital, Cboe Global Markets, and Avon Ventures.
The integration of Coin Metrics' capabilities will enhance Talos's platform by providing streamlined access to advanced portfolio analytics, sophisticated risk monitoring, premium indexes, and industry-leading execution capabilities. The acquisition aims to address the challenges of unreliable and fragmented market intelligence in the crypto space by creating a unified platform with institutional-grade clarity. The combined platform will enable institutional investors to manage the entire asset lifecycle, from strategy modeling to post-trade reconciliation.
