Citi-Backed Talos Acquires Crypto Risk Management Platform Cloudwall

Talos, a crypto trading software provider backed by heavyweights including Citibank and Andreessen Horowitz, has fully acquired Cloudwall, a crypto risk management platform.

The size of the deal wasn't disclosed, but Talos said Cloudwall will improve its existing crypto portfolio management system to help its institutional clients manage risks and optimize their portfolios.

"Cloudwall's focus has been very much rooted in building the tools that institutions need to manage a portfolio of digital assets, while Talos has focused on trading technology as well as complementary pillars of a PMS, namely portfolio engineering tools for portfolio construction and tools for P&L, treasury, and position management," said Talos co-founder and CEO Anton Katz, adding, "Therefore, the acquisition was a natural step forward in Talos' mission to deliver a comprehensive institutional-grade PMS."

Founded in 2021, Cloudwall's cloud-based platform allows users to run various risk models and have a clear view of their risks, enabling them to decide which risks they want to gain exposure to and which ones to hedge, Katz said.

Talos and Cloudwall had been in talks for a few months regarding the acquisition itself, Katz said — adding that Talos had been familiar with Cloudwall since its inception and had been discussing ways the two firms could partner for a long time.

"Talos and Cloudwall share a view that in the future all assets will be digital assets," Kyle Downey, co-founder and CEO of Cloudwall, said in a statement. "Risk is fundamental to finance, whatever the asset class, and digital assets are no exception. That's why we're excited to continue our mission of building the risk management defenses that institutions need to trade digital assets — under the auspices of Talos." 

A proportion of Cloudwall's employees will join Talos upon the merger.

(Source: The Block)