#Netherlands #Amsterdam #OTC Trading #tokenized assets #Flow Traders

Flow Traders Launches Around-the-Clock OTC Liquidity for Tokenized Assets

In a significant move reflecting the increasing demand for digital assets, Flow Traders Ltd. (Euronext: FLOW), a prominent global trading firm based in Amsterdam, has launched its over-the-counter (OTC) trading platform geared towards tokenized assets. This offering includes 24/7 liquidity for various asset classes, such as equities, commodities, and money-market funds, thereby accommodating the rising interest in trading during off-peak hours.

The liquidity initiative is particularly tailored for tokenized assets, characterized by offerings like Franklin Templeton's BENJI and Tether Gold. As more institutions recognize the potential of tokenization in enhancing their trading strategies, the launch spotlights a pivotal shift in how trading will be conducted in the near future.

Flow Traders has identified that institutions are increasingly seeking ways to manage and hedge their exposures, especially when market movements occur outside typical trading hours. This need has prompted the firm to provide continuous liquidity, which is vital for maintaining efficient market operations and risk management.

Thomas Spitz, the CEO of Flow Traders, articulated the significance of this evolution: "Over the last two decades, we've witnessed a transformative change in market structures, evolving from ETFs to electronic trading. Tokenization represents a key next phase in this evolution; we're observing early signs of its impact, as tokenized equities and synthetic derivatives begin trading at noteworthy volumes. In some instances, trading activity of certain large-cap U.S. stocks in tokenized markets has approached 2-3% of the volume in their primary listings. Much of this activity now occurs beyond traditional trading hours, highlighting the necessity for robust liquidity infrastructure."

Flow Traders is committed to bridging traditional financial markets with digital innovations, leveraging its extensive experience in both sectors to facilitate trading outside the confines of standard hours. The new OTC platform allows institutions to engage in trading and risk management for tokenized equity and commodity exposures while utilizing established OTC workflows that provide familiar procedures for settlement.

Additional insights were provided by Paolo Ardoino, CEO of Tether, who emphasized the crucial role liquidity providers like Flow Traders play in supporting digital commodities. He stated, "The demand for gold, in both traditional and tokenized forms, has surged as investors seek stable value in an increasingly volatile macroeconomic climate. Ensuring that tokenized assets, such as XAU₮, trade efficiently is paramount for a broader audience in the market, and Flow Traders' involvement enhances the overall market structure for digital versions of physical assets."

The comprehensive OTC offering is available through Flow Traders' Digital Asset OTC platform, developed in partnership with leading issuers and infrastructure providers in the digital market space. Institutions will have the capability to access liquidity via various connectivity options, including direct FIX connections, Order Management Systems (OMS), Execution Management Systems (EMS), and high-touch OTC execution services.

Looking ahead, the coverage of asset offerings is expected to evolve based on counterparty interest, regulatory frameworks, and the venues supported. While product availability might vary from one jurisdiction to another, Flow Traders aims to ensure comprehensive access tailored to the needs of its clients.

As Flow Traders forges ahead with its innovative liquidity solutions, the trading firm strengthens its position at the forefront of both traditional and digital markets, reaffirming its commitment to delivering superior services in an increasingly interconnected financial landscape.