The massive crypto rout this week has not tempered the expansion plans of the world’s largest exchange. Binance recently announced that they were planning to invest into an over the counter trading desk called Koi Trading.
Building Freedom of Value Exchange Globally
Binance Labs revealed yesterday that it has made a $3 million investment into OTC trading desk, Koi Trading. According to reports the San Francisco based trading platform also offers assistance with data science, quantitative research, and compliance consulting work. Their website elaborates that ‘Koi Trading offers a reliable, efficient, and compliant OTC pathway for institutions and high net-worth individuals to engage with cryptocurrency. Brokerages, exchanges, miners and funds worldwide trust Koi Trading for its professional, high-touch services and robust cryptocurrency liquidity.’
The report goes on to quote Binance Labs chief, Ella Zhang, who said;
“Koi Trading’s mission is to bridge fiat and cryptocurrencies in a compliant manner. This aligns with our broader vision at Binance to build the infrastructure which provides the freedom of value exchange globally.”
While CEO and founder, Hao Chen, who was previously the CTO of HBUS, added; “Our team of experienced traders and sales personnel will join forces to tap into vast networks of counterparties in North America, Asia and the EU, bridging the gap that divides the current OTC landscape.”
Koi also has satellite offices in Europe and Hong Kong, the latter to tap into the huge OTC trading market in China where regular crypto exchanges are banned. Chinese traders have taken to online messaging apps such as WeChat to arrange their dealings though the regime has tried to clampdown on that also.
“With Koi’s robust AML program, extensive banking relations in the US, investment from Binance Labs, and strong trust amongst counterparties in the Greater China, we aim to be the market nexus that reduces trust and information asymmetry and improves cryptocurrency OTC deal close rate,” Chen added.
There is a caveat for Chinese customers though, they need deep pockets. Koi is one of the few OTC desks that accept Chinese clients, however due to overwhelming demand the company requires a monthly trading volume exceeding half a million dollars.
As reported by NewsBTC last month some institutional investors are now switching to OTC trading to avoid excessive fees and limits on exchanges. Some exchanges, such as Bitfinex, charge almost as much as Paypal for withdrawing fiat which makes OTC trading all the more attractive.
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Author: Martin Young