Binance launches crypto-to-crypto OTC trading desk
Binance, the world’s largest digital currency exchange by trading volume, announced yesterday that it was launching an over-the-counter trading desk for cryptocurrencies.
“Binance is happy to announce the launch of our crypto-to-crypto over-the-counter (OTC) trading desk. 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,” the announcement reads.
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Since the new service, called Binance OTC, is geared towards larger transactions, it requires a minimum trade order of 20 BTC. Users will also need a Binance Level 2 (verified) account or above, in order to use the service.
According to Binance, the service will offer some significant advantages for users of the exchange, such as the ability to quickly trade large quantities of cryptocurrencies in a single trade and increased privacy “because the order books will not be touched”.
With this move, Binane becomes the latest major crypto exchange to open an OTC crypto trading desk. In November, Coinbase, the operator of the largest US crypto exchange, launched a similar service for users of its Prime service. Coinbase’s head of sales, Christine Sandler, explained at the time that the company had launched the 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”.
“We felt this was a huge benefit to our clients to actually leverage both our exchange and our OTC business,” Sandler said in an interview with Cheddar at the time.
Explaining what makes its OTC offering stand out, Binance pointed to its experience in facilitating crypto-to-crypto trades across its portfolio of more than 80 listed digital currencies, as well as its broad and diverse client base.
According to data from digital currency tracker Coinmarketcap, Binance has generated some $530 million in trading volume over the past 24 hours.