Global
algorithmic trading firm Wintermute is strengthening its presence in the
tokenized securities market by providing round-the-clock over-the-counter (OTC)
trading support for BlackRock’s USD Institutional Digital Liquidity Fund
(BUIDL).
Wintermute Expands OTC
Trading Support for BlackRock’s Digital Fund BUIDL
The move
comes as Wintermute’s OTC desk celebrates a record-breaking year, having
achieved $24 billion in daily trading volume on November 13, 2024. This
expansion of services aims to enhance liquidity and accessibility for
institutional investors trading tokenized securities.
BUIDL,
which launched on Ethereum in March 2024, has established itself as the world’s
largest tokenized fund by assets under management. The fund, which provides
exposure to U.S. Treasury bills and repurchase agreements through blockchain
technology, has recently expanded its reach by launching new share classes
across multiple blockchain networks, including Aptos, Arbitrum, Avalanche,
Optimism’s OP Mainnet, and Polygon.
“The
opportunity to provide liquidity within tokenized securities opens up growth
for this emerging investment vehicle,” stated Evgeny Gaevoy, CEO of
Wintermute. “We aim to bridge the liquidity gap and provide the crucial piece
that completes the value chain by enabling BlackRock’s BUIDL to be traded more
efficiently on secondary markets.”
The timing
of this initiative aligns with growing institutional interest in digital
assets. Gaevoy noted that traditional financial institutions are increasingly
looking to enter the digital asset space in 2025.
“By
providing liquidity for BUIDL through Wintermute’s OTC desk, we want to play a
key role in this growth and give a new group of institutions an easy and
cost-effective way to access digital assets,” he concluded.
Strategic Developments
Wintermute’s
BUIDL trading expansion comes amid broader developments in the firm’s
institutional trading infrastructure throughout 2024. The algorithmic trading
firm has implemented several technological and operational enhancements during
this period.
The firm
completed its first Request for Quote (RFQ) trade on Finery Markets’ platform
in November, establishing a hybrid model that merges traditional orderbook
trading with RFQ functionality. This technical implementation aims to enhance
institutional trading capabilities.
A July
integration with oneZero’s EcoSystem expanded the firm’s cryptocurrency trading
infrastructure, providing institutional access to over 350 trading pairs. The
integration serves banks and financial institutions seeking cryptocurrency
market exposure.
Wintermute
Asia, the firm’s digital asset trading division, introduced cryptocurrency
Contract for Difference (CFD) products to its OTC derivatives offering in early
2024. The division reported increased trading activity from traditional
financial institutions, with volumes exceeding those of crypto-native firms in
the latter part of 2023.
Global
algorithmic trading firm Wintermute is strengthening its presence in the
tokenized securities market by providing round-the-clock over-the-counter (OTC)
trading support for BlackRock’s USD Institutional Digital Liquidity Fund
(BUIDL).
Wintermute Expands OTC
Trading Support for BlackRock’s Digital Fund BUIDL
The move
comes as Wintermute’s OTC desk celebrates a record-breaking year, having
achieved $24 billion in daily trading volume on November 13, 2024. This
expansion of services aims to enhance liquidity and accessibility for
institutional investors trading tokenized securities.
BUIDL,
which launched on Ethereum in March 2024, has established itself as the world’s
largest tokenized fund by assets under management. The fund, which provides
exposure to U.S. Treasury bills and repurchase agreements through blockchain
technology, has recently expanded its reach by launching new share classes
across multiple blockchain networks, including Aptos, Arbitrum, Avalanche,
Optimism’s OP Mainnet, and Polygon.
“The
opportunity to provide liquidity within tokenized securities opens up growth
for this emerging investment vehicle,” stated Evgeny Gaevoy, CEO of
Wintermute. “We aim to bridge the liquidity gap and provide the crucial piece
that completes the value chain by enabling BlackRock’s BUIDL to be traded more
efficiently on secondary markets.”
The timing
of this initiative aligns with growing institutional interest in digital
assets. Gaevoy noted that traditional financial institutions are increasingly
looking to enter the digital asset space in 2025.
“By
providing liquidity for BUIDL through Wintermute’s OTC desk, we want to play a
key role in this growth and give a new group of institutions an easy and
cost-effective way to access digital assets,” he concluded.
Strategic Developments
Wintermute’s
BUIDL trading expansion comes amid broader developments in the firm’s
institutional trading infrastructure throughout 2024. The algorithmic trading
firm has implemented several technological and operational enhancements during
this period.
The firm
completed its first Request for Quote (RFQ) trade on Finery Markets’ platform
in November, establishing a hybrid model that merges traditional orderbook
trading with RFQ functionality. This technical implementation aims to enhance
institutional trading capabilities.
A July
integration with oneZero’s EcoSystem expanded the firm’s cryptocurrency trading
infrastructure, providing institutional access to over 350 trading pairs. The
integration serves banks and financial institutions seeking cryptocurrency
market exposure.
Wintermute
Asia, the firm’s digital asset trading division, introduced cryptocurrency
Contract for Difference (CFD) products to its OTC derivatives offering in early
2024. The division reported increased trading activity from traditional
financial institutions, with volumes exceeding those of crypto-native firms in
the latter part of 2023.
This post is originally published on FINANCEMAGNATES.
