Bittrex, the U.S.-based crypto exchange, announces the launch of an over-the-counter (OTC) trading desk to complement its exchange business.
Bittrex, a leading cryptocurrency exchange based in the United States, has launched an over-the-counter (OTC) trading desk. The new service will allow execution of block trades of digital assets tied to crypto and fiat pairs.
According to the firm’s CEO, Bill Shihara, the new service would be available only to approved customers who will be able to trade in almost 200 tokens that are listed on the platform.
OTC trading is carried out directly between two parties and not through an exchange. The deal is usually facilitated by an agency or broker. Institutional investors are known to prefer OTC trades over exchanges.
Bittrex Joins the Growing League of OTC Providers
With the latest move, Bittrex joins the top U.S.-based cryptocurrency firms in providing OTC-based services.
Earlier last year, firms that started their OTC operations include Coinbase, Poloniex, Gemini, and Circle. Data reveals that while the trading volumes on crypto exchanges have dropped since January 2018, the OTC trade volumes have grown over the same timeframe.
Overall, OTC business complements the existing services provided by these exchanges.
How Does the Service Work?
The minimum entry point for using the new service has been set at $250,000. The platform offers excess liquidity to customers for executing large orders as well as guaranteed pricing for certain block trades.
Bittrex earns its commission on such trades by acting as an agency and facilitating the trade between the two parties.
Eligible customers can call Bittrex customer support to communicate their block order. The firm will look for willing buyers and sellers and provide multiple quotes to the customer.
The client needs to confirm that he/she accepts the offered price for the deal. Upon confirmation, the OTC desk will execute the trade and carry out the settlement within 48 hours of receiving the deposit.
Bill Shihara, CEO at Bittrex, says:
We’re excited to offer this new, game-changing trading option for our customers. With one of the most extensive selections of digital assets of any OTC desk available, this offering will be another way for Bittrex to further advance the 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.
What are your thoughts on this new offering from Bittrex? Let us know in the comments below.
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