Smart security issuance and trading technology solution Tokenomica has recently inaugurated an over-the-counter (OTC) trading desk.
According to the official blog post by the company, it was disclosed that traders on Tokenomica will now be able to buy or sell Bitcoin with Euros. The exchange has set a benchmark of between 5 BTC and 50 BTC on the OTC desk, at a 0.75 % trading fee. Hence the impression that the OTC will be majorly for large clients.
The announcement also disclosed that deposits and withdrawals on the OTC desk will be facilitated by SWIFT and SEPA. And all trade will be done directly with fiat currency and not fiat-backed stablecoin.
The Malta-based exchange disclosed that more digital currencies apart from BTC will be listed on the OTC desk in the near future. However, they refused to disclose if the exchange planned to list another fiat apart from the Euro too.
More on over-the-counter (OTC) trading
The crypto space is experiencing an influx of OTC trading desks. Mainly due to the high demand for this service among crypto receptive institutions. Especially those who make large cryptocurrency-based transactions. OTC trading is one of the ways the crypto space mitigate rapid crypto price fluctuations. These orders are usually carried out privately, which is outside of the order books. Most times with a third party serving as a middleman between the buying and selling party. So irrespective of how much digital asset an institutional client purchases, the exchange price of volatile cryptocurrency remains unaffected. Hence, no single buyer has the power to influence the exchange prices of digital assets.
Several exchanges currently offer OTC trading. Exchanges like Coinbase, Gemini, Huobi, Bithumb, Coincheck. Even the world’s largest exchange by trading volume Binance. All offering fiat for crypto to large traders. Most crypto trading in China takes place via the OTC desk, due to the 2017 ban on crypto exchanges.
In other news, Kraken recently acquired Circle’s OTC trading desk.