The is week, one of the largest cryptocurrency exchanges in the world, Binance, announced that it is going to invest a $3 million in the United States over the counter cryptocurrency trading desk, Koi Trading. Even if this amount is considered small for an exchange like Binance, the move is notable and it helps boost the credibility of Koi Trading desk.
Binance Lab Invests In Koi Trading
Koi Trading is an over the counter trading desk that has its headquarters in San Francisco, CA. The firm aims to become one of the few global options that provide private cryptocurrency liquidity in line with regulatory compliance. The firm also provides assistance with quantitative research, compliance consulting work and data science. The head of Binance, Ella Zhang, had this to say after the announcement:
“Koi Trading is determined to bridge the gap between cryptocurrencies and fiat money in a manner that is regulatory compliant. This is in line with our goal to build a compliant infrastructure that provides global freedom of value exchange.”
Hao Chen, the CEO and founder of Koi has experience in the financial space. In his words:
“Our team of sales personnel and traders have come together to tap into vast counterparties in North America, EU and Asia. Our goal is to bridge the gap that divides the over the counter trading landscape.”
Over The Counter Trading And Cryptocurrency Markets
Over the counter trading is common in China. They have always been a popular trading option and they became more popular after the Chinese government started attacking the cryptocurrency industry. At this time, the WeChat is what is used to coordinate over the counter trading in China. The problem with the existing method is that people involved don’t have access to trustworthy professional options. WeChat is just a Chinese messaging app.
The collaboration between Binance lab and Koi Trading is, hopefully, going to rectify the difficulties attached to OTC trading on a global scale. This will give clients a better and more secure option. Chen continued:
“Koi has a robust AML program that will enable extensive banking relations within the United states, build strong trust among counterparties, and make it the market nexus that improves cryptocurrency over the counter trading.”
Over the counter cryptocurrency trading isn’t just booming in China. Outside China, this form of trading has taken center stage. Even with the current bearish pressure in the market, investors are still engaging in this type of trading. The OTC trading desk created by Circle has recorded individual trades worth more than $100 million.