Nick Chong · 1 day ago · 2 min read
Decentralized Exchange AirSwap Launches OTC Trading
Built on Ethereum, AirSwap is one of the first decentralized exchanges to gain public adoption as a peer-to-peer value transfer network. On Aug. 15, AirSwap is revealing a new OTC trading product for mainnet rollout.
AirSwap Introduces Conversational OTC Trading
Founded in 2017, AirSwap became a leader in decentralized exchanges (DEX) by offering frictionless peer-to-peer trades for over 60 ERC20 tokens to a network of retail investors. The company’s board of advisors includes Galaxy Digital founder Mike Novogratz and Ethereum co-founder Joseph Lubin.
In a blog post released Aug. 10, AirSwap announced a set of updates to its Widget, Toolkit and over-the-counter trading product. Among the new features is a private chat for traders to negotiate transaction terms and an identification interface designed in partnership with Wyre.
The incoming AirSwap OTC block trading product could enable investors with deeper pockets to trade virtually any quantity of digital assets on the decentralized exchange. Don Mosites, co-founder of AirSwap, explained:
“It essentially allows you more flexibility on price and the ability to know your counterparty, assess with whom you’d like to do business more directly. With the OTC tools, this unlocks a totally new world of liquidity. This is going to enable trades of any size to happen with the AirSwap network.”
With the rise of institutional solutions to cryptocurrency investing, more accredited investors and investment firms are inclined to join the sector and catalyze incoming capital.
While DEX’s might be less efficient than centralized exchanges, the benefits of minimal transaction costs and user custody prove invaluable to investors processing large volume trades. AirSwap says it hopes to become the streamlined solution for OTC trading, which typically requires real-time negotiation and several days until settlement.
AirSwap is also introducing requests for quotes (RFQs), which can be broadcast by liquidity takers to the entire network. Upon discovery, makers can select to respond and negotiate the terms of the trade in a quick, frictionless trading process.
It’s apparent that institutional investors may still be reluctant to trust a DEX platform for large investments. However, AirSwap hopes to mitigate security risks for its OTC trading feature by partnering with BitGo, a multi-signature wallet provider used frequently by high-end custody clients. BitGo recently added support for AirSwap’s AST tokens.
AirSwap has also introduced a new identification interface, with verifications processed externally by Wyre, a regulated money services business (MSB). This feature ensures institutional investors that AirSwap is in compliance with Know-Your-Customer (KYC) regulatory policies.
Targeting an institutional client base, AirSwap appears on its way to delivering decentralized digital asset trading to a spectrum of cryptocurrency investors.