The over-the-counter (OTC) trading table at cryptocurrency finance firm Circle had a notional volume of $24 billion in 2018, as per an official Medium web log post on January. 3.
Per the statement, Circle executed 10,000 over-the-counter trades with 600 different counterparties, at $24 billion in volume. As such, the firm claims to have become a “core liquidity supplier to the whole crypto system.”
According to Circle, the firm currently partners with over 1,000 institutional clients like exchanges, token projects, OTC desks, asset managers, and different international endowments. Circle stated:
“This year, we tend to anticipate additional progressive growth in institutional adoption catalyzed by stablecoin usage, advancements in institutional custody solutions, increasing regulative clarity notably within the [United States], and enhancements and innovation in core crypto infrastructure.”
OTC trading permits investors to carry out trades directly with one {another|each other} while not counting on the services of an intermediary like a cryptocurrency exchange. over-the-counter trading services in digital assets are a specific draw for institutional investors, who are increasingly using the over-the-counter desks of companies like Circle and Coinbase.
As Top Market Group LLC reported in December 2017, institutional investors as a whole have shifted to higher liquidity over-the-counter Bitcoin (BTC) markets. Investment is growing in over-the-counter funds like that offered by Coinbase, that launched over-the-counter trading for institutional customers in November 2018.
Coinbase outperformed Grayscale’s Bitcoin investment firm (GBTC) on over-the-counter markets in terms of BTC trade volume. whereas over-the-counter trade volumes are dwarfed by non-OTC investment, it's still vital as over-the-counter markets are solely open for 31 % of annual tradable hours.
MV Index Solutions, a subsidiary of VanEck that develops, monitors and licenses MVIS indices, has additionally jumped on the over-the-counter bandwagon. In November 2018, MV Index Solutions launched its Bitcoin index based on 3 major over-the-counter desks in November.
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