South Korean cryptocurrency exchange Bithumb has recently launched an over-the-counter (OTC) trading desk called ‘Ortus’ that’s set to help it serve institutional clients getting into the cryptocurrency ecosystem. According to a recently published press release, Ortus is set to execute block deals and work as a “matchmaking service catering to institutional clients.”
The document quoted Bithumb’s director Rahul Khanna, stating that institutions trading cryptocurrencies need to open accounts at exchanges and OTC desks, and that there’s no “real solution for an aggregated liquidity provider or a trusted interdealer where Institutions can trade these assets.
Khanna added:
To fill this market gap, Ortus will operate to allow institutions to buy and sell digital assets through a network of global liquidity providers and benefit from a competitive and best price execution service.
Per the press release Ortus will have a strict onboard process for institutions, and will require know-your-customer (KYC) and anti-money laundering (AML) checks. It’ll also offer insured custodian services and transfers from US bank accounts.
The trading desk is set to operate as subsidiary to Bithumb Global, which has offices in Tokyo, London, Sydney, and Buenos Aires, and is headquartered in Hong Kong. It’s currently unclear which cryptocurrency Bithumb’s OTC desk will support.
As CryptoGlobe covered Bithumb has been a controversial platform in the last few months. This, as reports have shown it became the largest cryptocurrency exchange by trading volume through “incentivized trading.” This, after selling a majority stake to BK Global, a Singapore-based medical surgery group.
Increasing Number of OTC Desks
Notably Bithumb isn’t the only major cryptocurrency exchange launching an OTC trading desk. Bittrex, a major US-based crypto exchange, has launched its own OTC platform last month, with support for 200 tokens.
Other top cryptocurrency exchanges, including Binance, Coinbase, and Circle, currently operate their own OTC desks. Circle’s OTC desks, as CryptoGlobe covered, handled $24 billion in cryptocurrency trades last year.
Square Inc, the company behind the popular Cash App, has quietly moved its bitcoin trading service to OTC desks last year, as it allows for a “faster and more secure platform” that creates “less price volatility when trading large amounts of bitcoin.”
Featured image via Bithumb.
