Binance has recently made a big announcement, which reveals that it is investing in an over-the-counter (OTC) crypto trading desk based out of US. The declaration states that Binance has invested a significant amount of $3 million into Koi Trading.
Even though Crypto exchange platforms seems more active regarding digital assets trading, OTCs are playing a huge role to keep the crypto market relevant, especially to those who use it to move large quantities of money. OTC trading desks are still indicating growing development, while exchanges are facing traders pulling out of it due to extreme volatility and upsetting downturns.
Coming back to the announcement of Binance, Koi Trading is an OTC trading firm in San Francisco, CA. They intended to be a compliant global alternative for private cryptocurrency liquidity. Additionally, Koi provides service with data science, quantitative research, and compliance consulting work.
Here, CEO and founder at Koi Trading, Hao Chen stated, “Our team of experienced traders and sales personnel will join forces to tap into vast networks of counterparties in North America, Asia, and the EU, bridging the gap that divides the current OTC landscape.”
Regarding the collaboration with a massive exchange platform Binance he commented, “With Koi’s robust AML program, extensive banking relations in the US, investment from Binance Labs, and strong trust amongst counterparties in the Greater China, we aim to be the market nexus that reduces trust and information asymmetry and improves cryptocurrency OTC deal close rate.”
Moreover, Head of Binance Labs Ella Zhang expressed, “Koi Trading’s mission is to bridge fiat and cryptocurrencies in a compliant manner.” She further added, “This aligns with our broader vision at Binance to build the infrastructure which provides the freedom of value exchange globally.”
In China, a majority of Chinese OTC trades are done using chat apps, as they are coordinated with the help of a Chinese chat app called WeChat. This method lacks an easy-to-use, professional option they can trust as an interface.
Amid this, an active entrance of OTC into the crypto space is expected to strengthen the market.