Binance now offers wealthy traders a “personalized way” to conduct trades larger than 10 BTC off of the exchange’s order books via over-the-counter (OTC) trading.
Binance trading introduces block trading services
One of the world’s largest and most popular cryptocurrency exchanges, the Malta-headquartered Binance, introduced a new feature that allows its users to trade larger volumes of cryptocurrencies. According to the company’s July 26 blog post, Binance Trading now offers a “personalized” way for well-bankrolled users to trade “large block sizes.”
Block Trading Services with #Binance Trading
Binance Trading offers a personalized way to trade large block sizes (generally over 10 $BTC) quickly & securely.
Transactions are settled quickly & seamlessly into your Binance account.
— Binance (@binance) July 26, 2019
The company said that orders larger than 10 BTC will now be traded over-the-counter (OTC) instead of directly on the exchange’s order books. Because of the minimum trade requirements, this means that users will need an account balance of at least $100,000, and most will likely have at least this amount.
Binance claims this will stop large orders from negatively affecting the price of the traded tokens, which is something the crypto industry has seen happen more often in the past few months as the markets heat up. But, at the same time, it may obfuscate trades from the public order books.
All transactions made with Binance Trading will be settled “quickly and seamlessly” into users’ Binance accounts. CryptoSlate reached out to Binance and a spokesperson from Binance Trading elaborated that “pricing is transparent; we provide an all-in price with no hidden fees, and the trader can choose to take or pass on the trade.” And while the exchange didn’t provide any further details regarding its fees, the blog post said that automated quoting services are now available for qualifying clients.
Binance Trading will support block trades in most coins listed on the exchange, even trading pairs that are not listed.
Block trading could reduce price swings on Binance
Binance is certainly not the first major crypto exchange to enable block trading, but it is the first exchange that introduced OTC trading for bulk orders of all the crypto pairs it has listed. That said, the exchange insists that only Binance users that have accounts verified to level 2 or higher will be able to access the service.
Despite having one of the largest trade volumes in the crypto industry, Binance isn’t immune to price swings caused by huge buy and sell orders. Offering a personalized and quick way for verified users to make large block trades will help Binance maintain a growing trading volume while maximizing revenues from larger clients.
The introduction of OTC block trading follows a slew of other new features Binance launched in the past couple of months. Earlier in July, the exchange announced that it will offer futures contracts on the new “Binance Futures” platform. Just a few weeks before that, Binance DEX, the company’s decentralized exchange, lowered the fee structure for the Binance Chain mainnet.
The company is also expected to launch a fully licensed and regulatory compliant exchange in the U.S. after it announced that Binance’s services will no longer be available in the country due to regulatory concerns.