In Thursday’s edition of The Daily, we feature stories that show cryptocurrency exchanges continuing to develop advanced services designed to attract institutional investors. These include OTC trading, derivatives and futures.
Also Read: Major Video Card Supplier Enters Cryptocurrency Mining Business
Coinbase Launches Dedicated OTC Desk
Coinbase has launched an over-the-counter (OTC) trading desk. The initiative went live earlier this month exclusively for its Prime members, who include hedge funds and other agency-level businesses. These high-rolling clients can now use the service to trade cryptocurrency via direct communication methods such as Skype, email and by phone, as is common for OTC desks in other markets.
“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,” said Christine Sandler, head of sales at Coinbase, in an interview with Cheddar. “We felt this was a huge benefit to our clients to actually leverage both our exchange and our OTC business.”
Unlike other OTC desks, Coinbase claims it is not a counter-party in the deals it helps clients complete. The company plans to eventually offer delayed settlement and perhaps integrate this with its custodial service.