Binance announced on Thursday the launch of its OTC (over the counter) portal. In the official tweet, the company informed that the portal will serve as a request for quotation (RFQ) platform, and will allow users to confirm trades and receive settlements directly into their Binance accounts.
#Binance Launches OTC Trading Portal
The portal is a live request for quotation (RFQ) platform in which users will be able to confirm trades and receive quick settlement directly into their Binance accounts.https://t.co/J8KZsto5HF pic.twitter.com/ayiIgbbQmm
— Binance (@binance) April 2, 2020
In an official blog post on its website, Binance stated that traders could request for quotes on-demand 24/7. It further said,
“A key advantage of using the portal is that it will generally offer better prices for making large crypto block trades, compared to doing a market buy/sell on the exchange, and prices will normally get better in comparison to the order book the larger the size of the trade is. This is because the order book will start to thin out, causing more and more slippage. Small-cap / low-volume coins are hit hardest by this and it can often be very difficult to buy/sell even relatively smaller amounts.”
As of now, the Binance OTC Portal supports 25 different tokens and many more are planned to be added soon. Users, however, need to have a KYC (level 2) verified Binance account, and the minimum tradable size is a 10,000 USDT.
The portal will use algorithms to unwind the trade without affecting the markets, which will leave no drastic wicks on the chart. “Basically, the markets could turn against you while you are waiting for the order book to fill out / bids to get filled, leaving you with an even worse execution price,” the company added. “By using the trading portal, traders lock in prices the moment they accept the quote, protecting themselves against this risk, and they also won’t have the hassle of having to spend time constantly watching prices.”
Yesterday, Changpeng Zhao, Binance CEO, had posted a screenshot on Twitter about Bitcoin Mining Pool’s first live stream, which as supposedly trending in Chinese circles.
In a subsequent tweet, CZ stated that the Binance Mining Pool was coming soon and that new financial product would soon be added to Binance, including staking, savings, and loans.