Coinbase, the leading US crypto exchange and wallet provide has launched over-the-counter (OTC) trading for institutional investors, according to Cointelegraph and New York financial news network, Cheddar.
This new OTC option is different to trading through the exchange itself, because it will allow the institutional investors to trade directly with each other. Christine Sandler, Coinbase’s head of sales, said, “the move is taking place in conjunction with an increased demand for OTC crypto trading from institutional players, considering leveraging both exchange and OTC business as a ‘huge benefit’ to their customers.” As she said, OTC complements the exchange business and also allows Coinbase to take advantage of its discovery that a significant number of institutions were using OTC “as an on-ramp for crypto trading.”
It is also apparent that the OTC service may be combined with Coinbase Custody, launched in July and also intended to serve institutions. Cointelegraph also points out the New York news source Cheddar revealed that Coinbase “has also started allowing its clients to trade any asset that is available on institutional investing platform Coinbase Prime, as well as having launched more order books options, including web interface, Skype, Bloomberg IB, email, or phone.”
Coinbase has being going through steady growth this year and has launched a number of new products, as well as accepting new digital assets on the exchange. Furtherore, in June 2018 it started the process of becoming a fully regulated broker dealer approved by the US Securities and Exchange Commission (SEC). This move would see Coinbase given permission to offer more crypto-related services, such as the OTC service as well as crypto securities trading and to help it achieve its aim it has bought Keystone Capital Corp, a securities dealer. It has also made several other business purchases, including Venovate and Digital Wealth.
Currently, Coinbase’s OTC service only has one competitor — Circle. This crypto-related financial services business, funded by Goldman Sachs, launched an OTC service in February after it purchased the Poloniex exchange.