The largest US cryptocurrency exchange, Coinbase, had launched an over-the-counter (OTC) desk, online publication Cheddar reported yesterday.
According to the report, Coinbase made OTC trading available to its Prime users earlier this month. The San Francisco-based company started permitting clients to trade any asset that trades on Coinbase Prime and order books through its web interface, Skype, Bloomberg IB, email or phone, Cheddar said, citing documentation it had obtained earlier.
In a recent interview with Cheddar, Coinbase’s head of sales, Christine Sandler, confirmed that the company had enabled OTC trading.
“We launched our OTC business as a complement to our exchange business because we found a lot of institutions were using OTC as an on-ramp for crypto trading,” Sandler told the publication. “We felt this was a huge benefit to our clients to actually leverage both our exchange and our OTC business.”
Coinbase Prime was launched in May, as part of a product suite aimed at attracting professional traders and institutional investors. Prime, in particular, is a trading platform offering a set of sophisticated tools used by institutional investors to trade crypto.
According to the documentation, OTC trades “settle seamlessly and instantly, with funds available for immediate withdrawal” and there is “no possibility of a failed trade and no need to chase down wires and blockchain transfers”.
Sandler revealed that Coinbase intended to expand the service to include delayed settlement and will potentially integrate it with Coinbase Custody, Coinbase’s custodian solution that was also released as part of the aforementioned suite of institutional products. Sandler further explained that the launch of the OTC desk was the result of client demand.