has recent addition to Huobi’s over-the-counter (OTC) trading platform is
another massive win for the blockchain startup. Consequently, XRP is now
available for trades as an instrument alongside BTC, ETH, USDT, and the Huobi
Token. The OTC platform is one of the most popular for peer-to-peer traders.
Huobi’s adjusted $738 million daily trading volume makes it the eight largest crypto exchange globally. The listing of the XRP at its OTC trading desk is the seventh of its kind. Taking to twitter the exchange said:
“Huobi OTC announcement is now here! XRP will launch on Huobi OTC at 10:00 March 6″.
CEO, Livio Weng, added:
“The addition of Ripple is a big step forward in expanding our already extensive offering here.”
Ripple’s xRapid Solution for OTC Exchanges
XRP enthusiasts are however predicting massive use for Ripple’s xRapid in OTC exchanges. The liquidity solution from Ripple uses XRP as its bridge currency. The xRapid solution can eliminate delays in high volume global payments. It can, in addition, lower the costs of the transactions, drastically. In OTC applications, it would make the high volume trades inexpensive and instant.
The use of xRapid in OTC exchanges would also highly bolster XRP’s value. Its liquidity features will, nevertheless, give OTC desk services that pool of extra money they need for massive trades. Many crypto exchanges are increasingly adding OTC desk services in their services. This is in a bid to capture institutional clients with extensive volume needs.
Bithumb the South Korean digital assets exchange has opened one too. Similarly, Binance and Bittrex have their OTC trading desks. This move came right afterward the Morgan Stanley report on the bullish nature of bitcoin’s institutional investment. Genesis Global Trading, an OTC crypto platform and part of the Digital Currency Group have reported a 50 percent annual increase in trading volumes.
OTC Exchanges Register Massive
say that one of the biggest influences on BTC’s price is OTC trading. It,
however, regularly overlooked since most data is based on crypto exchange
trading data. Over-the-counter trading is nonetheless done off an exchange. It
is either a broker-assisted exchange or a peer-to-peer process.
data is, therefore, not part of the global trading volume conversation. It is
however, immense. Ripple, for instance, had a $19 million worth of XRP sale in March
to an unknown third party.
research done by TABB
group in 2018, showed that OTC trading moved at least $12 billion BTC each
day. OTC trading is the most preferred trading mode for whales. Most hedge
funds, private wealth managers, high net individuals, and institutional traders
result to it for its advantages. There
is first, the personalized service that keeps price slippage in check.
is not possible on a live exchange due to a lack of liquidity. It takes time to
trade large orders here. However, OTC trading executes such high volumes
faster. The fees are also lower than that of live exchanges for large volumes.
The data of such trades hardly shows up on the trading volume map because most
are executed privately.