Crypto Exchanges, Stablecoins

Coinbase Launches OTC Crypto Trading Desk; USDC Stablecoin “One of the Most Liquid” on the Market

Coinbase Launches OTC Crypto Trading Desk; USDC Stablecoin “One of the Most Liquid” on the Market

Coinbase launches its over-the-counter (OTC) trading desk for its institutional Prime customers today, with plans to integrate delayed settlement and Coinbase Custody. This move will reduce the costs of acquiring cryptocurrency for institutions and help reduce overall market volatility.

Over-the-counter trading (OTC) occurs directly between trading parties instead of over an exchange. Many institutions (as well as whales) use OTC as a mechanism to mitigate slippage and prevent scalping, front-running, and other volume-related losses.

In an interview with Cheddar, Christine Sandler, head of sales at Coinbase, described the move as “opportunistic,” and a response to client demand.

Furthermore, Sandler mentions that Coinbase is launching the service to beat out competitors Poloniex and Gemini. Poloniex acquired its OTC services in February, Circle Trade, in an acquisition, while the Winklevoss’ launched Gemini OTC in April.

Coinbase Announces Immediate Support for Circle’s USD Stablecoin
Related: Coinbase Announces Immediate Support for Circle’s USD Stablecoin

Unlike Coinbase’s competitors, Coinbase will not only “trade on a proprietary basis,” but will also “match client orders.” This bodes well for users of the service, resulting in lower fees and lower settlement times.

According to Sandler, the service would allow trades to settle “seamlessly and instantly” with funds available for “immediate withdrawal,” and with “no possibility of a failed trade,” and “no need to chase down wires and blockchain transfers.”

Additionally, Sandler claims that this won’t just impact institutional users. All Coinbase customers—and the cryptocurrency markets more broadly—could potentially benefit from lower volatility.

Coinbase’s Stable Coin

In another daring move, Coinbase also launched its own stable coin, USDC, competing with the likes of Tether, True USD, and USD Coin. Speaking on its success, Sandler said that USDC is “one of the most liquid stable coins that is trading right now,” and speaking on its impact on the markets more broadly:

“When you think about volatility you think about the complement of how do you mitigate that volatility for users of cryptocurrency. And, a stable coin absolutely does that [mitigates volatility].”

Market and Global Impact

Speaking on the recent market downturn, Sandler also says that there is an upside. Institutions may be thinking that this is a prime opportunity to enter at a lower price:

“There is one upside to the recent volatility, that crypto has been front and center to the mainstream media, and that has driven a lot of institutions to think whether this is an opportunistic investment point.”

Regardless of market conditions, progress by Coinbase is helping make cryptocurrency available to everyone. Broader and easier access could have widespread ramifications. As Sandler eloquently stated:

“The opportunity for us to offer and have financial services for the unbanked globally is really coming alive.”

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Did you like this article? Join us.

Get blockchain news and crypto insights.

Join Us on Telegram
Mitchell Moos

Mitchell is a software enthusiast and entrepreneur. In addition to writing, he runs a non-profit that teaches people about the blockchain. In his spare time he loves playing chess or hiking.

View author profile