The popular US crypto exchange and wallet provider Coinbase is in today’s crypto news for launching OTC (over-the-counter) trading for institutional investors yesterday on November 27.
Over-the-counter crypto trading will help all of the institutional investors to carry out direct trades between each other. The head of sales at Coinbase, Christine Sandler, said that this is a strategic move since the demand for OTC crypto trading is increasing and that Coinbase is considering covering both OTC businesses and exchange ones as well. Sandler noted:
“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 for crypto trading.”
She also pointed out that the OTC service will be ultimately combined with the Coinbase Custody service that provides crypto custodian tools for institutional investors that were launched back in July. Coinbase has also offered their clients to trade any asset that is available on the separate institutional investing platform-Coinbase Prime.
The major exchange began its journey to become a fully regulated broker back in June by fulfilling all the requests from the US Securities and Exchange Commission and earned to offer a number of crypto services such as this OTC trade service.
According to Business Insider, the crypto giant first announced their plans to bring in block trades in May 2018 and many other crypto-focused companies followed. For example, Circle which is a crypto-based financial company has a similar OTC service and was first introduced in February when the company acquired the Poloniex exchange.
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