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The over-the-counter (OTC) trading desk at the cryptocurrency company Circle had a notional volume of $ 24 billion in 2018, according to an official blog post on January 3.
According to the statement, Circle has executed 10,000 OTC trades with 600 different counterparts, with a volume of 24 billion dollars. As such, the company claims to have become a "major liquidity provider for the entire cryptosystem".
According to Circle, the company now works with over 1,000 institutional clients such as exchanges, token projects, OTC branches, asset managers and other global endowments. Circle stated:
"This year we foresee further incremental growth of institutional adoption catalyzed by the use of stablecoin, progress in institutional custody solutions, and increased regulatory clarity in particular. [United States]and improvements and innovation in the basic cryptographic infrastructure ".
OTC trading allows investors to trade directly with each other without relying on the services of an intermediary such as a cryptocurrency exchange. OTC trading services in digital resources are a particular attraction for institutional investors, who are increasingly using OTC banks of companies like Circle and Coinbase.
As reported by Cointelegraph in December 2017, institutional investors as a whole moved to higher OTC liquidity markets than Bitcoin (BTC). Investments are growing in OTC funds such as that offered by Coinbase, which launched OTC trading for institutional clients in November 2018.
Coinbase outperformed Grayscale's Bitcoin Investment Trust (GBTC) on OTC markets in terms of BTC trading volume. While OTC trading volumes are downplayed by non-OTC investments, it is still significant as the OTC markets are only open for 31% of the tradable annual hours.
Also MV Index Solutions, a subsidiary of VanEck that develops, monitors and licenses MVIS indexes, has made a jump on the bandwagon of the OTC. In November 2018, MV Index Solutions launched its Bitcoin index based on three major OTC branches in November.
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