Huobi targets high volume traders with new OTC desk

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Huobi Global has launched its new over-the-counter (OTC) desk that targets high net worth individuals and high volume digital asset traders. The OTC desk is built on Huobi’s distributed ledger technology (DLT) license, issued by the government of Gibraltar. It will support both fiat-to-crypto and crypto-to-crypto transactions. Some of the currencies it will support include the Euro, U.S. dollar and GBP.

In a press release shared with CoinGeek, Jeff Adams cited the increased demand from institutional investors for a regulated crypto trading platform as the key driver for Huobi Global. Adams, a senior sales manager at the firm, stated:

“We see a lot of appetite out there from players in more established financial markets when it comes to digital assets but many are still uncomfortable jumping into unregulated trading environments. We also see an unfilled need for services aimed at those looking to make large volume transactions. Huobi OTC Desk is a big step forward to filling both of those needs.”

Some of the benefits that its users are expected to enjoy include real time price quotations that will also serve as their execution prices. This is unlike traditional exchanges in which traders don’t know their final executional prices before the trade takes place. This is usually challenging for high volume transactions in which even the slightest price change has huge consequences.

The OTC desk also promises its clients competitive pricing, liquidity especially for large volume transactions and a dedicated support team.

It will mainly attract high volume traders, with the minimum trading volume required for a trader being $100,000 or an equivalent in digital currencies. Adams explained further:

“OTC trading desks are proprietary principle-based traders that match supply and demand. Counterparty risk is a huge risk in OTC. We hope to launch a service that is both regulation friendly and highly capitalized.”

Adams announced the new product offering during Huobi’s breakfast meetup in New York City. During the meetup, which took place Tuesday, Huobi Global also revealed that it would upgrade its native HUSD stablecoin to HUSD 3.0. With the upgrade would come new features such as lending and futures trading.