Earlier yesterday, the team at Binance announced that they had opened an Over-the-Counter (OTC) trading desk to provide additional liquidity for their high-volume users. The tweet making the announcement also referenced the recently concluded Binance blockchain event in Singapore that ran from the 19th to the 22nd of this month.
More About the OTC Trading Desk
The exchange has since provided additional information about the OTC trading desk at Binance. To begin with, the new service will be crypto-to-crypto and will allow Binance users to trade larger amounts of the numerous cryptocurrencies on the exchange. Transactions will be settled directly on their Binance accounts.
The OTC trading desk will allow high-volume traders to save time by clearing their trades at one go. All trades will also be private and the order books will not be touched. As earlier mentioned, all settlements will be be done using the user’s account and there will be no need of additional wallets.
The team at Binance has also explained why their OTC desk is better than the rest in the industry. They explained it as follows.
Here are some of our advantages:
1. We specialize in crypto-to-crypto trades, across more than 80 cryptocurrencies listed on Binance.
2. We constantly endeavor to offer quick pricing for your OTC trades, with simple and quick settlement processes.
3. We have a broad and diverse client base as an effective distribution platform.
Requirements Needed to Access the OTC Trading
At the moment of writing this, there are only two requirements.
- The Binance user has to have a Level 2 verified account or above
- Each trade will have to be worth at least 20 Bitcoin (BTC)
All interested individuals and firms are requested to contact the Binance OTC desk directly at firstname.lastname@example.org.
Other Cryptocurrency OTC Trading Desks
The move by Binance to open an OTC trading desk comes after several other prominent exchanges embraced the concept wholeheartedly. Other notable exchanges offering OTC services are Bittrex, Coinbase, OKEx, Huobi, Circle, itBit, Kenetic Capital, Genesis Trading and SFOX.
What are your thoughts on Binance launching a crypto-to-crypto Over-the-Counter trading desk for its clients with a Level 2 verified account or above? Does this mean that there are ‘whales’ and institutional investors making an entry into crypto? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.