Flow Traders Launches 24/7 Tokenized Asset Trading: A Game Changer for Institutional Investors
Flow Traders, a leading global trading firm and major player in the Exchange Traded Product (ETP) market, has launched a 24/7 over-the-counter (OTC) trading service for tokenized assets. This move provides institutional investors with continuous access to liquidity for tokenized equities, commodities, and money market funds, even outside of traditional market hours. The service includes Franklin Templeton’s BENJI and Tether Gold (XAUT) among others.
Bridging the Gap: Why 24/7 Liquidity Matters
Traditionally, institutional investors faced challenges managing risk and executing trades during weekends and overnight sessions when traditional markets were closed. Recent events, such as heightened tensions between Iran and Israel, highlighted this issue, with cryptocurrency markets remaining active although traditional trading desks were inactive. Flow Traders’ new offering directly addresses this gap, enabling continuous risk management and capital flow.
The demand for this service is driven by institutions seeking the ability to manage exposure beyond standard trading hours. Flow Traders’ CEO, Thomas Spitz, stated the firm is “pleased to be able to offer 24/7 OTC liquidity for regulated tokenized stocks and commodities to permitted counterparties through our digital assets OTC platform.”
How Does It Operate?
The OTC platform provides counterparties with two-way pricing, supported by risk controls designed for overnight and weekend market conditions. Institutions can trade and hedge tokenized equity and commodity exposures against fiat or stablecoins, utilizing familiar OTC workflows and defined settlement processes. Access to liquidity is available through standard trading interfaces like FIX direct connections.
Tokenization Market Growth & Flow Traders’ Expertise
The asset tokenization market is experiencing rapid growth, currently valued at approximately $3 trillion and projected to exceed $18 trillion by 2031, with a compound annual growth rate (CAGR) of 44.25%. The tokenized gold and silver market alone has grown nearly fourfold since the end of 2024, approaching a value of $6 billion.
Flow Traders leverages its two decades of experience in ETP market making and liquidity provision to navigate this evolving landscape. The firm is ranked among the top three global market makers by ETP trading volume. According to Mark Jansen, Flow Traders’ Co-Head of Trading, “Our role is to provide liquidity wherever the market evolves.”
Beyond Traditional Exchanges: The Rise of Tokenized Assets
Tokenized equities and commodities are gaining traction on platforms like Binance, OKX, and Hyperliquid. Flow Traders’ OTC liquidity service aims to assist large traders better manage risk even after exchange trading hours. Jansen notes that activity in tokenized and synthetic markets has, at times, reached around 2-3% of the notional trading volume of their primary U.S. Listings, with much of this activity occurring outside traditional U.S. Market hours.
Paolo Ardoino, CEO of Tether, emphasized the importance of liquidity providers like Flow Traders in ensuring efficient trading and broader market access for tokenized assets like XAUT.
Future Outlook: Expanding Asset Availability and Regulatory Considerations
The availability of assets within the new OTC service will evolve based on institutional demand, ongoing regulatory developments, and integration with supported exchanges. Product offerings will vary by jurisdiction and customer eligibility requirements, with access provided by different Flow Traders group members based on their respective regulatory status.
FAQ
Q: What are tokenized assets?
A: Tokenized assets are digital representations of real-world assets, such as stocks, commodities, or funds, on a blockchain.
Q: What is OTC trading?
A: Over-the-counter (OTC) trading is a decentralized method of trading financial instruments directly between two parties, without the need for a central exchange.
Q: Who is Flow Traders?
A: Flow Traders is a leading global trading firm specializing in market making and liquidity provision for a wide range of asset classes.
Q: What are the benefits of 24/7 liquidity?
A: 24/7 liquidity allows investors to manage risk and execute trades at any time, even outside of traditional market hours.
Did you realize? The asset tokenization market is predicted to grow to over $18 trillion by 2031.
Pro Tip: Institutional investors should explore OTC trading options to enhance their risk management capabilities and capitalize on opportunities outside of traditional market hours.
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