Cryptocurrency Market Maker Flow Traders Expands into Tokenized Assets Space with 24/7 OTC Market Launch

Flow Traders, a leading market maker, has expanded its 24/7 OTC trading platform to include tokenized assets such as Franklin Templeton's BENJI and Tether Gold according to The Block. The offering supports institutional clients in managing exposure outside traditional market hours. The firm's CEO, Thomas Spitz, noted that tokenization could be a major step in market evolution, similar to past innovations like ETFs and electronic trading.

The 24/7 OTC desk provides two-way liquidity for tokenized equities, commodities, and money market funds as reported. Institutional counterparties can trade and hedge exposure using fiat or stablecoins at any time. This development addresses the need for continuous liquidity as tokenized markets gain popularity.

The service is available to permissioned counterparties who have completed KYC checks according to CoinDesk. Flow Traders aims to continue expanding its real-world asset (RWA) offerings based on counterparty demand and regulatory developments. The move aligns with the broader trend of institutional adoption in tokenized assets.

Why the Move Happened

Institutional demand for 24/7 liquidity has grown, especially with tokenized markets expanding. Flow Traders' co-CTO explained that the service is crucial for managing exposure during weekends and holidays when traditional markets are closed. The firm's 20 years of market-making experience positions it well to provide liquidity in tokenized assets.

The tokenized gold and silver market alone has reached $6 billion in value, up from roughly $1.5 billion at the end of 2024. This growth highlights the increasing relevance of tokenization in asset markets. Flow Traders sees this expansion as part of a broader shift in how assets are traded and managed.

How Markets Responded

The tokenization market is expected to grow rapidly as more firms enter the space. The RWA market has grown to over $27 billion, with some estimates predicting it could reach trillions of dollars in the coming years. This growth is driven by institutional adoption and improved infrastructure.

Flow Traders' entry into tokenized assets reflects a broader trend among market participants. Firms like Wintermute and GSR have also expanded into the space. This competition is expected to drive further innovation and liquidity provision.

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