Market maker Flowdesk has launched an institutional credit desk, marking a significant expansion in its footprint within the digital asset markets. This development comes at a pivotal time as traditional finance players are increasingly seeking more efficient pathways to deploy and access capital in the burgeoning realm of cryptocurrency.
Sophisticated institutional counterparties are in search of structured credit products that not only manage liquidity but also effectively hedge exposure and generate yield across fragmented trading venues. Flowdesk’s new desk aims to meet this demand by seamlessly integrating lending, borrowing, and structured credit into its existing over-the-counter (OTC) and liquidity infrastructure.
Reed Werbitt, Flowdesk’s U.S. CEO and Chief Revenue Officer, emphasized the evolving needs of institutions trading digital assets: “They require more than just efficient execution. They need tools to unlock capital and structure strategies with precision.” This highlights the increasing complexity and sophistication required in institutional trading environments.
The new credit desk is designed to work harmoniously with Flowdesk’s OTC and liquidity services, further enhancing the firm’s offerings for its institutional clients.
This rollout comes merely two months after Flowdesk raised over $100 million to bolster its workforce and develop an OTC derivatives trading desk, demonstrating a commitment to growth and innovation in an increasingly competitive landscape.
Guilhem Chaumont, co-founder and Global CEO of Flowdesk, noted, “Our mission is to deliver institutional-grade trading solutions for the digital asset ecosystem.” He added that the launch of the Credit Desk is aligned with Flowdesk’s commitment to providing access to advanced digital asset strategies and robust risk management for a wider array of institutional counterparties.
The expansion of Flowdesk coincides with a notable increase in U.S. institutional interest in digital assets, supported by regulatory encouragement from the White House. This environment has made it clear that there is a growing acceptance and integration of digital assets into traditional financial frameworks.
Flowdesk has consistently expressed a bullish outlook on this market narrative. In 2023, amidst the U.S. Securities and Exchange Commission’s (SEC) stringent stance on cryptocurrencies, Flowdesk made the strategic decision to expand its U.S. operations while many in the industry considered relocating offshore. Chaumont articulated his belief at that time, stating that the size and sophistication of U.S. capital markets made the risk of expansion a worthwhile endeavor.
As the landscape of digital assets continues to evolve, Flowdesk’s proactive approach and commitment to institutional services position it as a pivotal player in the industry.
