One of the largest crypto platforms in the space continues to expand with a new Over The Counter (OTC) market. The intention is to offer services to larger traders and companies such as financial or investment institutions. With an OTC platform itis possible for firms to trade one with each other reducing risks and abrupt mark movements. The information was released by Cheddar a few days ago.
Coinbase Launches Trading Desk For Institutions
During an interview with Cheddar, Christine Sandler, head of sales at Coinbase, announced that Coinbase launched an OTC business. She commented that the OTC market will be complementing the exchange business. Several institutions prefer to use OTC trading desks rather than traditional virtual currency exchanges.
“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 from crypto trading,” explained Christine Sandler. “We felt this was a huge benefit to our clients to actually leverage both our exchange and our OTC business.”
Back at the beginning of November, Coinbase started to offer clients the possibility to trade any asset on Coinbase Prime using the web interface, Skype, Bloomberg IB, email and other platforms.
The trades happen seamlessly and almost instantly, according to Sandler. Funds can also be withdrawn immediately. Moreover, she mentioned that Coinbase wants to expand its service offering and include delayed settlement. In the future, it might be possible to see an integration with Coinbase Custody, a platform specifically designed for institutional and larger investors.
“Trades settle seamlessly and instantly, with funds available for immediate withdrawal,” reads a documentation presented to clients.
The OTC service will be available for individual or institutional investors. The minimum ticket size is $250,000.
Another virtual currency exchange, Gemini, has also launched an OTC trading platform. Gemini is one of the most regulated exchanges in the crypto market, as well as Coinbase. Both of them have been working very closely with regulatory agencies in the United States and other countries.
Coinbase is known for offering a trading platform that is very intuitive and user-friendly. Most of the newcomers to the space have their first contact with virtual currencies through Coinbase.