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 total 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.