TD Ameritrade Backed Exchange Introduces OTC Crypto Spot And Futures Platform
TD Ameritrade backed crypto exchange, ErisX announced the launch of big blocks trading (over the counter, OTC) in its markets. The move is set to increase private transactions of big game traders on the platform on a large variety of crypto spot and future pairs.
In a press release on Tuesday, ErisX released the plans to offer big-time traders, institutions, and high net worth clients deeper liquidity and multi-custodial solutions on the new OTC platform. Over the counter trades allows peer to peer exchange agreements with the settlement carried out at the ErisX Clearing House.
The trading platform will allow privately negotiated trades to be submitted off the exchange given the size and value of the trades. However, ErisX will be the settling party making sure that every detail discussed and set beforehand are followed at settlement.
The CEO of ErisX, Thomas ChippaS, was ecstatic with the latest launch saying the OTC (big block) trades will gain their capabilities through the REST based API. He further said,
“We are removing the friction and risks associated with OTC based workflows and expanding the universe of potential counterparties for our Members with a competitively priced service.”
The growth of OTC trades in crypto
The world of crypto OTC trades has been the norm in parts of Asia and Europe for the last few years as centralized exchanges take it upon themselves to settle these big trades. Late last year, Kraken exchange, announced its acquisition of Circle’s OTC desk in a bid to deepen users’ liquidity on their desk.
According to a Coingape uncovering in late 2019, over 90% of the Chinese crypto investors dealing in over the counter trades use the largest stablecoin, Tether (USDT) in the settlement.
