Major Crypto Exchanges Launch OTC Desks Despite the Crypto Winter The world’s biggest crypto exchanges are launching OTC desks for institutional investors. “They’re now realizing what we’ve known for years: OTC trading desks already play an integral role in crypto.” The world’s biggest crypto exchanges scramble to cater to institutional investors 506 Total views 85 Total shares Analysis Institutional investment is increasingly being seen as the future of crypto trading, with both Binance and Bittrex launching their own dedicated over-the-counter ( OTC ) desks in January. The desk launches come after Morgan Stanley published a bullish report in November, showing a strong pattern of institutional investment for Bitcoin. The latest developments indicate that some of the world’s largest exchanges are receiving increased demand from institutional investors, for whom OTC represents a lucrative opportunity. Cointelegraph takes a look at the latest launches and OTC news. Binance launches dedicated OTC desk
On Jan. 23, the number-one ranked cryptocurrency exchange Binance announced the launch of its over-the-counter (OTC) trading desk in a blog post on its website. This new service, known as Binance OTC, will allow service users to carry out transactions larger than the equivalent of 20 BTC ($69,552).
Officials explained the basic premise of the new service in a blog post:
“Our OTC desk allows Binance users to trade larger amounts of many cryptocurrencies listed on the exchange, with transactions being settled via their Binance accounts.” As per the post, officials also hoped to draw potential customers to their service by promising trades of large quantities of different cryptocurrencies that will clear at the same price simultaneously. The blog post also sought to reassure prospective clients by adding that trades are private due to the fact that order books will not be touched. Service users will also be able to use direct settlements for OTC trades, without needing to use different wallet addresses. The product launch comes on the back of strong gains being made by Binance Coin (BNB), which now ranks as the 12th-largest coin by market capitalization. The company recently rebranded Trust Wallet as a multi-cryptocurrency wallet, adding an additional 14 blockchains. Bittrex launches OTC desk after increased client demand Another company to recently launch an OTC desk is United States-based cryptocurrency exchange Bittrex. The firm will offer investors seeking to conduct larger trades the opportunity to trade the same 200 crypto assets available to users on its standard platform. Unlike users of the standard service, OTC investors will have to be able to commit to minimum trades of $250,000 or more. According to Bittrex CEO Bill Shihara , the launch of the desk is a result of increasing demand for an OTC service from its customer base: “This offering will be another way for Bittrex to further advance adoption of blockchain technology worldwide, while also providing our customers with price certainty and a fast and easy way to trade large blocks of digital assets.” Bittrex Chief Strategy Officer Kiran Raj told Cointelegraph that the OTC launch is part of Bittrex’s commitment to continually revise its services to suit its customers:
“We continuously evaluate and expand our offerings to give our customers a wide range of opportunities for participating in the blockchain industry, and our customers were interested in an OTC service with an extensive selection of digital assets.”
Regarding the ongoing crypto bear market, Raj remained optimistic both about continued client demand and the possibility of staying afloat in an increasingly competitive market:
“We continue to see interest from investors at all levels, and we’re expanding our offerings and services to meet the current and future demand. It really comes down to trust and our extensive selection of digital assets. Bittrex is known for our reliability, security and commitment to compliance, and by combining these core pillars, with our broad selection of innovative blockchain projects, we’re providing customers a unique service that’s tailored to their needs.” Circle leads the way with OTC Despite the abundance of recent over-the-counter desk launches and a vertiginous fall in crypto prices throughout 2018, cryptocurrency finance firm Circle announced that its OTC desk, Circle Trade, had a notional volume of $24 billion in 2018. According to the announcement made by the company in a Medium blog post, Circle completed 10,000 OTC trades, with around 600 distinct counterparties across 36 different crypto assets. As per the press release , the notional volume equated to roughly $24 billion in notional volume. In light of the group’s increased growth and influence across the crypto market, the firm claims to have “become a core liquidity provider to the entire crypto ecosystem.” According to the company, Circle is now partnered with more than 1,000 institutional client...