Binance cryptocurrency exchange, the leading exchange by trade volume has launched a crypto-to-crypto Over the Counter (OTC) desk to provide its vast high volume user base with additional liquidity. Announcing this new feature, Binance made a tweet that referenced a blog post with further details published on the 23rd January 2019. The tweet also referenced the just concluded Binance Blockchain Week that ran from the 19th to the 22nd January 2019.
Since the leafing cryptocurrency exchange only offers its services for crypto to crypto pairs, its OTC desk will also only facilitate crypto to crypto exchanges without any updates of further support for fiat currencies. OTC services on the platform will allow Binance users to trade large amounts of cryptocurrencies without affecting the order book.Trades on the OTC platform will be settled through individual Binance user accounts. This means that the users will not require additional wallets to store their crypto and their Binance accounts should suffice.
Binance is not the first to launch an OTC trading desk but according to its blog post, its OTC desk has several advantages over its peers’ trade desks. As listed these include:
- Being able to quickly trade large quantities of cryptocurrencies in a single trade.
- You can save time by clearing your trades at one price.
- Your trades are private because the order books will not be touched.
- You will benefit from direct settlements into your Binance account with your OTC trades; no need to handle different wallet addresses.
As the above features show the platform does not offer a lot beyond the industry standard offering. Struggling not to become another me-too OTC platform, Binance has some advantages that differentiate it from the competition. These are:
- Specialize in crypto-to-crypto trades, across more than 80 cryptocurrencies listed on Binance.
- Constantly endeavor to offer quick pricing for your OTC trades, with simple and quick settlement processes.
- A broad and diverse client base as an effective distribution platform.
The Binance OTC will facilitate high volume trades of at least 20 BTC value. According to the requirements, only users with a level 2 verified account will be able to have access to the platform.