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Flow Traders debuts 24/7 OTC liquidity service for tokenized stocks, gold and money market funds

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Flow Traders debuts 24/7 OTC liquidity service for tokenized stocks, gold and money market funds

Flow Traders, one of the world’s top market makers in exchange-traded products, said Tuesday it is bringing its decades of TradFi expertise to tokenized assets with the launch of 24/7 over-the-counter (OTC) liquidity.

The move arms institutional clients with a new tool, allowing them to manage risk and keep capital flowing via blockchain versions of popular traditional assets when traditional exchanges are dark on weekends and after hours.

The new offering, delivered through Flow Traders’ Digital Asset OTC platform, provides proprietary, two-way pricing for tokenized money-market funds, equities and commodities, including Franklin Templeton’s BENJI and tether gold (XAUT), according to the press release shared with CoinDesk.

It means that the OTC platform will now constantly quote prices, ready to buy or sell the tokenized assets outside regular traditional market hours. The service is available immediately to permissioned counterparties, with institutions able to access liquidity via direct FIX connectivity and other standard trading interfaces.

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“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,” Thomas Spitz, CEO of Flow Traders, said.

The OTC liquidity aims to address a nagging problem for institutions: The inability to adjust positions during weekends or overnight sessions. This has become brutally clear in recent weeks, as Iran-Israel tensions flared over the weekends, leaving traditional trading desks empty while crypto markets churned.

The demand mainly comes from institutions that want the ability to manage exposure outside traditional market hours,” Marc Jansen, co-chief trading officer at Flow Traders, told CoinDesk.

He explained that 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.

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“All weekend long, with these markets getting pretty close to the traditional market open price as a result of that weekend price discovery. OTC liquidity helps support that activity, particularly for larger trades where public venue liquidity is still developing,” he said.

According to the firm, tokenization is growing fast and the tokenized gold and silver market alone is nearing $6 billion in value, up roughly fourfold since the end of 2024.

“Liquidity providers such as Flow Traders play a critical role in ensuring that tokenized assets like XAUT can trade efficiently across venues and reach a broader set of market participants,“ said Paolo Ardoino, CEO of Tether.

The asset tokenization market is reportedly worth $3 trillion as of this year and is growing at a CAGR of 44.25% and could reach over $18 trillion by 2031, according to some estimates.

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This booming market, however, demands more than just enthusiasm; it requires battle-tested expertise, and this is where Flow Traders appears to have an edge, thanks to their 20 years of experience in market-making and liquidity provisioning for global exchange-traded products.

They operate across asset classes, including ETPs, digital assets, fixed income, FX, and commodities, and ranked among the top three global market makers by ETP trading volume in 2025.

“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. That already requires using models rather than relying purely on underlying market prices and we’ve built those pricing models over time in our ETF business, and they can be extended to tokenized markets,” Jansen said.

“Our role is to provide liquidity wherever the market develops,” he added.

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The new OTC service will expand coverage and evolve, with asset availability guided by institutional counterparty demand, ongoing regulatory developments, and the integration of supported trading venues.

Product offerings will therefore vary by jurisdiction and depend on client eligibility, with different members of the Flow Traders group providing access based on their respective regulatory statuses.

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Crypto World

ECB Opens Work on ATM, Payments for Digital Euro

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ECB Opens Work on ATM, Payments for Digital Euro

The European Central Bank (ECB) is seeking industry experts to contribute to workstreams focused on how the digital euro central bank digital currency would function across ATMs, payment terminals and acceptance infrastructure. 

In an announcement published Wednesday, the ECB opened applications for two workstreams under its Rulebook Development Group (RDG), covering implementation specifications for ATM and terminal providers, as well as certification and approval frameworks for payment solutions. 

The initiative revolves around defining how a potential digital euro would integrate with existing payment systems and hardware, including support for offline transactions and interoperability with standards used across Europe. 

The move signals a deeper shift from policy design toward implementation planning, with the ECB seeking input on how a digital euro would work across ATMs, payment terminals and related infrastructure, including offline use and existing technical standards.

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Related: ECB reveals Appia roadmap for central bank money in Europe’s tokenized markets

Workstreams target ATM integration, certification frameworks

According to the ECB, one workstream will focus on developing implementation specifications for ATM and terminal providers. This includes communication technologies, offline functionality and the reuse of existing payment standards. 

The second workstream will develop proposals for testing, certification and approval processes for payment solutions and infrastructure used by payment service providers within the digital euro ecosystem. 

Related: Stablecoins could weaken bank lending and monetary policy in Europe: ECB

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The workstreams will report to the RDG, which includes representatives from merchants, payment service providers and consumers. 

The ECB said selected experts are expected to provide technical input to support the development of a standardized rulebook.

ECB targets 2027 digital euro pilot

The ECB previously outlined plans to start selecting European Union-licensed payment service providers (PSPs) ahead of a 12-month digital euro pilot expected to start in the second half of 2027

On Feb. 18, ECB Executive Board Member Piero Cipollone said the pilot would involve a limited number of merchants, Eurosystem staff and PSPs. 

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Digital euro pilot information. Source: ECB

While the developments point toward continued progress on a digital euro, the ECB said a final decision on whether to issue it will only be taken after the relevant legislation is adopted.