Nasdaq’s trading platform Calypso is teaming up with cryptocurrency infrastructure provider Talos to launch a tokenized collateral solution and bridge the gap between traditional finance and cryptocurrencies.

The move will free up more than $35 billion in idle liquidity and enable institutions to streamline off-chain and on-chain trading for faster and cheaper settlements.

Nasdaq and crypto unite

This development comes after the March 18 approval by the US Securities and Exchange Commission (SEC) for eligible securities to be traded as regulated blockchain-based tokens.

The pilot program focuses on large market-cap stocks such as those within the Russell 1000 index, and major ETFs tracking the Nasdaq-100 and the S&P 500.

The Nasdaq-Talos…