FlowTraders, the principal trading firm, said today (Thursday) it has opened anover-the-counter desk offering continuous, two-way liquidity for tokenizedmoney-market funds, equities, and commodities, with Franklin Templeton's BENJIfund and Tether's gold-backed token XAU₮ among the initial products covered.The desk isdesigned to run around the clock, seven days a week, and targets permissionedinstitutional counterparties that, the company said, need to manage equity andcommodity exposure when traditional exchanges are closed. Counterpartiescan trade tokenized equity and commodity exposures against fiat currencies orstablecoins, using standard OTC workflows with defined settlement processes.Overnight Volumes Drivingthe PushFlowTraders CEO Thomas Spitz framed the launch as the latest step in a longer shiftin how investors access market exposure. "Over the past two decades,evolving market structures, from ETFs to electronic trading, have transformedhow investors access exposure," Spitz said. "Tokenization has thepotential to be one of the next major steps in that evolution."The companystated that in some large-cap U.S. stocks, combined activity across tokenizedand synthetic markets has "at times reached around 2-3% of the notionaltrading volume of their primary U.S. listings," with much of that activityoccurring outside regular U.S. market hours. Flow Traders did not identifywhich stocks or cite an independent source for those figures.The firm'smove into tokenized OTC liquidity follows several years of building out itsdigital asset infrastructure. In 2023, Flow Traders'crypto subsidiary was registered by De Nederlandsche Bank as a provider of cryptoservices in the Netherlands, authorizing the firm to offer spot OTCcryptocurrency liquidity and make markets in crypto exchange-traded products.Tether Gold Included FromDay OneTether CEOPaolo Ardoino said the partnership reflects a broader pickup in demand for goldexposure across both traditional and on-chain markets. "Demandfor gold, both in traditional markets and on chain, has accelerated asinvestors look for resilient stores of value in a more uncertain macroenvironment," Ardoino commented. "Liquidity providers such as FlowTraders play a critical role in ensuring that tokenized assets like XAU₮ cantrade efficiently across venues and reach a broader set of marketparticipants."Ardoinoadded that "supporting XAU₮ across multiple exchanges and through theirOTC desk helps strengthen the market structure around digital representationsof physical gold," framing the arrangement as an infrastructureimprovement rather than a purely commercial one. The deskprovides what the firm describes as risk controls designed specifically forovernight and weekend market conditions, though it did not elaborate on themechanics of those controls.Institutional OTC MarketFaces ConsolidationThe launchplaces Flow Traders among a growing field of firms building infrastructure fortokenized real-world assets, even as the broader OTC liquidity provider marketfaces growing pressure. A surveypublished by Finery Markets in early 2026 found that 60% of institutional OTCparticipants expected the number of active liquidity providers to fall beforeyear-end, suggesting consolidation may be approaching even as new entrantsexpand into the space.FlowTraders has been broadening its digital asset presence on multiple fronts overrecent years. The firm joined DWS and Galaxy Digital in a joint ventureto develop a euro-denominated stablecoin, and was named the sole liquidity providerin TP ICAP'sinstitutional crypto trading platform when it launched in 2021. The new OTCdesk extends that activity into the tokenized asset space, where discussion atDavos in January centeredon wholesale rather than retail applications as institutions began to treattokenization as a practical infrastructure question rather than a speculativeone.Access and AvailabilityInstitutionscan reach the desk via direct FIX connectivity, OMS/EMS platforms, ECNs, orhigh-touch OTC execution. The companydeclares that asset coverage will expand based on counterparty demand andregulatory considerations, and noted that product availability may vary byjurisdiction and counterparty eligibility, with different members of the FlowTraders group providing services depending on their regulatory status in agiven market.This article was written by Damian Chmiel at www.financemagnates.com.