As per a blog post by the crypto finance company, Circle, the company’s over the counter trading desk (OTC) has seen trades worth as much as USD 24B in the year 2018.
It is interesting to know that over the counter trading desks are preferred by high net worth individuals as well as institutional investors.
It was reported last in year in November that the San Fransico headquartered cryptocurrency exchange Coinbase had added an OTC desk to cater to the institutional investment class. The company had added the OTC desk in response to the increasing demand by institutional investors. The counter was released to cater to the investment class.
With the launch of the OTC trading desk, Coinbase had aimed to become a versatile platform that comes under the regulatory framework laid out by the US authorities.
Coming back to Circle, the company’s blog post has revealed that the massive numbers of USD 24B have meant that company plans to grow further. The blog post states,
“This year, we anticipate further incremental growth in institutional adoption catalyzed by stablecoin usage, advancements in institutional custody solutions, increasing regulatory clarity particularly in the United States, and improvements and innovation in core crypto infrastructure.”
Reportedly, Circle had executed as much as 10,000 over the counter trades with 600 different entities. According to their blog posts, Circle has collaborated with various institutional clients such as asset managers, token projects, crypto exchanges, etc.
An OTC trading desk allows trading in cryptos by eliminating intermediaries such as cryptocurrency exchanges. For this very reason, institutional investors are drawn to OTC desks by companies like Coinbase and Circle.
Another company to introduce OTC desks is the subsidiary of VanEck, called MV Index Solutions. The company had launched three OTC desks last year in the month of November.