Market maker flow desks have expanded the footprint of the digital asset market and launched the institution’s credit desk as traditional financial players are seeking more efficient ways to deploy and access capital in crypto.
Stylish institutional counterparties are looking for structured credit products to generate liquidity, hedge exposure, and yield across fragmented venues. Flowdesk’s new desk meets its demand by integrating lending, borrowing and structured credit into existing OTC and liquidity infrastructure.
“An institution that trades digital assets requires more than just efficient execution,” said Reed Verbitt, US CEO and Chief Revenue Officer of Flow Desk. “They need the tools to unlock accurate capital and structural strategies,” he added.
The new desk will integrate lending, borrowing and structured credit directly into Flowdesk’s OTC and liquidity services.
The development comes just two months after Flowdesk raised over $100 million to expand its personnel and built its off-the-shelf (OTC) derivative trading desk.
“Our mission is to provide institutional-grade trading solutions for the digital asset ecosystem,” said Guilhem Chaumont, co-founder and global CEO of Flowdesk, in a release.
“The launch of our credit desk is consistent with our commitment to expanding access to advanced digital asset strategies and robust risk management for the broader institutional counterparties,” Chaumont said.
Flowdesk’s expansion will bring the White House a green light of regulation to the industry amid growing US institutional interest in digital assets.
The trading company has always been pretty bullish about this story.
In 2023, at the height of the US Securities and Exchange Commission (SEC) crypto war, Flow Desk made a paradoxical move to expand its US offices, even if others in the industry were looking offshore. Chaumont said at the time that the size and refinement of the US capital markets was worth the risk.