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Binance has just released a new over-the-counter (OTC) trading desk for larger transactions. The world’s number one-ranked cryptocurrency exchange released the new announcement yesterday via blog post.
Binance Launches OTC Desk
Last week, the largest US cryptocurrency exchange Bittrex launched its over-the-counter trading platform. Bitfinex was the first platform to initiate it back in 2016, and Coinbase launched its own OTC trading for its prime members back in November of 2018.
Crypto OTC Made Better with #Binance.
What sets the Binance OTC trading desk apart? Click here to find out 👇https://t.co/73WwkxAX3Q … pic.twitter.com/c1rYLTObo9
— Binance (@binance) January 23, 2019
It seems that Binance was a bit behind the rest when it comes to launching this new project. However, the Chinese-based cryptocurrency exchange pulls far more daily consistent volume than most of these exchanges combined.
“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,” Binance explained in the post.
Binance OTC offers services geared towards users wishing to perform trades that are worth at least 20 BTC. Currently, that figure is around $71,000. It remains unknown at this time how often the platform will be used, as trade volume has significantly decreased since 2017. Still, OTC trading desks make it easier for institutional investors to invest in digital currencies.
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In regular stock trading, big-time investors often flood the markets with large amounts of money, which hasn’t been quite as common with crypto. Enabling OTC trading desks allows big investors to do just that. An OTC trading desk doesn’t guarantee they will do this, but at least they have the option to do so now. Circle confirmed back in December of 2018 that its extant OTC desk handled payments of around $24 billion in 2018—thus further confirming a want and need.
Circle said that it had more than 10,000 OTC trades with 600 distinct counterparties. 36 different crypto assets were traded, accounting in $24 billion in notional volume. Circle offers this trading service 24/7 with coverage in Asia, Europe, and the US.
It will be interesting to see how often the Binance OTC trading desk will be used moving forward.
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