Flow Traders, a leading market maker in exchange-traded products, has introduced a 24/7 over-the-counter (OTC) liquidity service for tokenized assets, including stocks, gold, and money market funds. This initiative aims to provide institutional clients with enhanced tools for managing risk and capital flow during periods when traditional exchanges are closed.
The service is accessible through Flow Traders’ Digital Asset OTC platform, which offers proprietary two-way pricing for various tokenized assets, such as Franklin Templeton’s BENJI and tether gold (XAUT). This continuous pricing mechanism allows institutions to buy or sell these assets outside of regular market hours, addressing a significant gap in liquidity during weekends and after-hours trading.
Thomas Spitz, CEO of Flow Traders, stated, “At Flow Traders, we have operated at the intersection of traditional and digital markets for many years, and we are pleased to launch 24/7 OTC liquidity for regulated tokenized equities and commodities for permissioned counterparties through our digital asset OTC platform.” This service aims to alleviate the challenges faced by institutions in adjusting their positions when traditional trading desks are unavailable.
Marc Jansen, co-chief trading officer at Flow Traders, emphasized the growing demand for such liquidity solutions, particularly as geopolitical tensions have highlighted the limitations of conventional trading hours. He noted, “The OTC liquidity service will help large traders manage their risk better beyond market hours through tokenized equities and commodities, which are already gaining popularity on venues such as Binance, OKX, and Hyperliquid.”
The tokenization market is experiencing rapid growth, with the tokenized gold and silver market nearing $6 billion, a significant increase from previous years. Paolo Ardoino, CEO of Tether, remarked on the critical role liquidity providers like Flow Traders play in ensuring efficient trading of tokenized assets across various platforms.
According to industry estimates, the asset tokenization market is currently valued at $3 trillion and is projected to grow at a compound annual growth rate (CAGR) of 44.25%, potentially reaching over $18 trillion by 2031. Flow Traders’ extensive experience in market-making and liquidity provisioning positions it well to navigate this evolving landscape.
Jansen also highlighted the firm’s expertise in pricing and risk management, stating, “For us, with extensive experience in the ETF markets, it’s a more familiar problem. We’ve always priced and managed risk in products when parts of the primary market are closed.” He added that the new OTC service will adapt to institutional demand, regulatory developments, and the integration of supported trading venues.
The offerings will vary by jurisdiction and client eligibility, with different members of the Flow Traders group providing access based on their respective regulatory statuses. As the market for tokenized assets continues to expand, Flow Traders aims to enhance its service offerings to meet the needs of its institutional clients.
Flow Traders has launched a 24/7 OTC liquidity service for tokenized assets, enabling institutional clients to manage risk outside traditional market hours. This service addresses the growing demand for liquidity in an expanding tokenization market, which is projected to reach over $18 trillion by 2031.