Large Investors Turn to Crypto Over-the-Counter Trading

Crypto over-the-counter (OTC) trading is a way for large investors to buy and sell cryptocurrencies without affecting market prices. This type of trading is designed to help reduce market impact, slippage, and information leakage.

Large exchange orders can move prices and worsen execution. To avoid this problem, institutions use OTC desks that source liquidity from multiple counterparties, often providing a single fixed price for the entire trade.

Kraken Institutional offers OTC execution starting at $50,000 in eligible jurisdictions, allowing clients to receive a single price for the entire order and settle trades within 24 hours through a Kraken account or bank. Coinbase Prime's request for quote system runs a competitive auction among liquidity providers, offering an all-inclusive fixed price.