San Francisco, CA – In a move signaling a growing institutional embrace of digital assets, Flow Traders, a leading global trading firm, has launched a 24/7 over-the-counter (OTC) liquidity offering for tokenized money-market funds, equities, and commodities. This new service aims to address a critical gap in the market: the ability for institutional investors to manage risk and maintain capital flow even when traditional markets are closed, particularly during weekends and overnight sessions. The offering includes support for tokenized assets like Franklin Templeton’s BENJI and Tether Gold (XAUT), providing counterparties with continuous two-way pricing backed by robust risk controls.
The launch reflects a broader trend of increasing demand for reliable access to tokenized assets beyond standard trading hours. As tokenized equities and commodities gain traction, secondary market activity is expanding across various instruments and trading sessions, extending into times when traditional exchanges are inactive. This shift necessitates continuous liquidity and execution frameworks to support effective equity risk management in a globalized, always-on trading environment. Flow Traders CEO Thomas Spitz emphasized the firm’s long-standing expertise in navigating evolving market structures, stating, “Flow Traders has been operating at the intersection of traditional and digital markets for some time, and we are pleased to offer regulated tokenized equities and commodities 24/7 OTC liquidity to approved counterparties via our digital assets OTC platform.”
The require for this type of service was recently highlighted by geopolitical events, such as the escalating tensions between Iran and Israel, which saw cryptocurrency markets remain active while traditional trading desks were largely inactive during weekend hours. This disparity underscored the limitations of relying solely on traditional market hours for risk management. According to Mark Jansen, Co-Head of Trading at Flow Traders, the demand for 24/7 liquidity is primarily driven by institutions seeking to manage their exposure outside of conventional trading times. He explained that the OTC liquidity service will enable large traders to better manage risk even after hours, particularly in tokenized stocks and commodities already popular on exchanges like Binance, OKX, and Hyperliquid.
Bridging the Gap: 24/7 Liquidity for a Growing Asset Class
The core of Flow Traders’ new offering lies in its ability to provide continuous, two-way pricing for tokenized assets. This means that counterparties can buy and sell these assets at any time, even when traditional exchanges are closed. The platform offers access to liquidity through standard trading interfaces like FIX direct connections, catering to the needs of institutional investors. This is particularly crucial for assets like tokenized gold and silver, which have seen significant growth in recent years. According to Flow Traders, the market for tokenized gold and silver has grown approximately fourfold since the end of 2024, nearing a value of almost $6 billion. Mordor Intelligence estimates the overall asset tokenization market is currently valued at around $3 trillion, with a compound annual growth rate (CAGR) of 44.25%, projecting a value exceeding $18 trillion by 2031.
Paolo Ardoino, CEO of Tether, highlighted the importance of liquidity providers like Flow Traders in ensuring the efficient trading and broader market access of tokenized assets such as XAUT. “Liquidity providers like Flow Traders play a critical role in enabling tokenized assets like XAUT to trade efficiently across various exchanges and reach a wider range of market participants,” Ardoino stated. The expansion of tokenization is not merely a matter of enthusiasm; it demands proven expertise. Flow Traders leverages its two decades of experience in global exchange-traded product (ETP) market making and liquidity provision to address this need.
The Rise of Tokenization and Institutional Demand
Tokenization, the process of representing real-world assets on a blockchain, is rapidly gaining momentum. The benefits are numerous, including increased accessibility, fractional ownership, and enhanced transparency. However, the nascent market requires specialized infrastructure and expertise to function effectively. Flow Traders, already ranked among the top three global market makers in ETPs based on 2025 trading volume, according to Matrix BCG, is well-positioned to provide this support. The firm operates across a diverse range of asset classes, including ETPs, digital assets, fixed income, foreign exchange, and commodities.
Jansen explained that Flow Traders’ experience in the ETF market is directly applicable to the tokenized asset space. “We’ve always been in the business of pricing and managing risk for products when the primary market is closed. That requires using models, not just relying on the underlying market price, and we’ve built those pricing models over time through our ETF business and can extend them into the tokenized markets.” He added, “Our role is to provide liquidity wherever the market evolves.” The new OTC service will evolve over time, expanding asset availability and adapting to the demands of institutional counterparties, regulatory developments, and the integration of supported exchanges.
Regulatory Considerations and Access
Access to Flow Traders’ OTC service is subject to jurisdictional regulations and client eligibility requirements. Different Flow Traders group members will provide access based on their respective regulatory status. This underscores the importance of navigating the evolving regulatory landscape surrounding digital assets. While the potential for 24/7 trading is significant, compliance and regulatory clarity remain paramount for institutional adoption. The firm’s commitment to providing regulated access to tokenized assets demonstrates its understanding of these challenges and its dedication to operating within a compliant framework.
The launch of this service comes at a time when institutional interest in digital assets is steadily increasing. The ability to hedge risk and manage exposure around the clock is becoming increasingly crucial for sophisticated investors. Flow Traders’ offering provides a much-needed solution, bridging the gap between traditional finance and the rapidly evolving world of tokenized assets. The firm’s established track record in market making and liquidity provision, combined with its commitment to regulatory compliance, positions it as a key player in this emerging market.
Key Takeaways
- Flow Traders has launched a 24/7 OTC liquidity service for tokenized assets, including equities, commodities, and money-market funds.
- The service addresses the need for continuous risk management and capital flow, particularly outside of traditional market hours.
- Institutional demand for this type of service is driven by the growing adoption of tokenized assets and the need to manage exposure in a globalized trading environment.
- Flow Traders leverages its two decades of experience in ETP market making to provide robust liquidity and risk controls.
- Access to the service is subject to regulatory requirements and client eligibility.
Looking ahead, Flow Traders will continue to monitor market demand, regulatory trends, and exchange integrations to expand the availability of assets and evolve its OTC service. The company’s commitment to providing liquidity across all market conditions positions it as a vital infrastructure provider in the burgeoning tokenized asset landscape. The next step for Flow Traders will be to expand the range of supported assets and further refine its risk management protocols as the market matures.
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