Flow Traders Launches 24/7 OTC Liquidity for Tokenized Assets

Executive Summary

Flow Traders, a leading market maker in exchange-traded products, has launched a 24/7 over-the-counter liquidity service for tokenized assets, including stocks, gold, and money market funds. This initiative addresses a key challenge for institutional clients: the limitation of trading only during traditional market hours. By leveraging blockchain technology to provide continuous proprietary pricing, the service enhances risk management capabilities. It offers Flow Traders a competitive advantage while improving accessibility for global investors, positioning the firm at the forefront of blending traditional and digital finance. This development sets a new benchmark for liquidity and operational flexibility in the global economy.

Key Insights

Service Launch and Core Components

Flow Traders has introduced its 24/7 OTC liquidity service through its Digital Asset OTC platform, providing two-way pricing for tokenized assets such as Franklin Templeton’s BENJI and tether gold (XAUT). The service is available to permissioned counterparties via direct FIX connectivity and standard trading interfaces, enabling institutions to trade tokenized versions of traditional assets outside regular hours. This responds to the demand for managing exposure during periods like weekends when geopolitical events may occur. Marc Jansen, co-chief trading officer at Flow Traders, noted that institutions are increasingly seeking to operate beyond traditional hours, driven by the growth of tokenized equities and commodities on platforms such as Binance, OKX, and Hyperliquid.

Market Context and Growth Trajectory

The tokenization market is expanding rapidly, with the tokenized gold and silver market approaching $6 billion in value, a fourfold increase since the end of 2024. Broader estimates indicate the asset tokenization market is valued at $3 trillion, growing at a compound annual rate of 44.25%, with potential to exceed $18 trillion by 2031. Flow Traders brings over two decades of experience in market-making for global exchange-traded products, ranking among the top three global market makers by ETP trading volume in 2025. Thomas Spitz, CEO of Flow Traders, emphasized that the firm operates at the intersection of traditional and digital markets, applying pricing models from its ETF business to tokenized markets. Paolo Ardoino, CEO of Tether, highlighted the role of liquidity providers like Flow Traders in ensuring efficient trading across venues.

Strategic Implications

Industry Disruption and Competitive Dynamics

Flow Traders' service challenges the traditional finance industry by offering 24/7 liquidity for tokenized assets, potentially shifting demand away from fixed-hour stock exchanges. Traditional exchanges may face pressure to adapt as institutions seek continuous access, particularly during off-hours when critical events unfold. Competitors in the ETP and digital asset sectors must consider developing similar services to remain relevant. This move signals a trend toward always-on trading environments, where liquidity provision becomes a key differentiator. The service's evolution will depend on institutional demand, regulatory developments, and integration with trading venues, varying by jurisdiction based on client eligibility and regulatory frameworks.

Investor Opportunities and Risk Management

Institutional investors gain enhanced risk management tools, allowing them to hedge positions or reallocate capital in response to real-time global developments, such as geopolitical crises occurring outside market hours. This improves portfolio flexibility and can contribute to smoother price discovery, potentially reducing volatility. However, it introduces operational complexities, including reliance on robust technology infrastructure and sophisticated pricing models during low-liquidity periods. For crypto-native traders and fintech platforms, the service offers integration opportunities and could drive higher transaction volumes, fostering innovation in digital asset products.

Policy and Regulatory Ripple Effects

Regulators face increased challenges in monitoring and controlling continuous cross-border trading, especially in jurisdictions with restrictive frameworks. The 24/7 nature of the service may necessitate updates to compliance protocols, focusing on anti-manipulation measures and cybersecurity threats. Ongoing regulatory developments will influence asset availability and service expansion, creating a dynamic landscape where policy adaptation is essential. This could accelerate global coordination on digital asset standards, shaping how traditional financial oversight evolves to accommodate blockchain-based innovations.

The Bottom Line

Flow Traders has positioned itself at the vanguard of a structural shift in finance with its 24/7 OTC liquidity service for tokenized assets. This move not only meets institutional needs for risk management but also establishes a new standard for market accessibility, accelerating the convergence of traditional and digital finance. Industry leaders must recognize that continuous trading is becoming a competitive imperative, driving innovation in liquidity provision and regulatory adaptation. In essence, Flow Traders' service redefines market hours, empowering institutions with greater flexibility while challenging incumbents to adapt in an increasingly tokenized economy.

Source: CoinDesk