Crypto OTC Trading Evolves into Institutional Market Infrastructure
Crypto over-the-counter (OTC) trading has evolved significantly since its inception. Initially, it was designed to solve the problem of executing large orders on public exchanges without moving the market. However, as institutional participants entered the space, the infrastructure around OTC trading changed.
Today, OTC trading is no longer just about executing a single large block away from a public order book. It has become an integral part of institutional crypto flows, encompassing various entities such as funds, fintechs, payment companies, trading firms, miners, exchanges, and treasury teams.
The core use case remains the same, providing a firm quote, sourcing liquidity, and settling reliably, but the landscape has expanded to include broader trading and settlement infrastructure. This includes factors such as pricing and hedging across multiple venues, settlement speed, fiat coverage, credit terms, and operational resilience.