AirSwap Releases New Decentralized OTC Crypto Trading Product ‘Spaces’
AirSwap Breaks Into OTC Trading With New Decentralized Product
AirSwap has announced the launch of a decentralized over-the-counter trading platform that is aimed at simplifying the process of large cryptocurrency trades and providing counterparties with more assurance.
The firm had announced its intention to dive into OTC trading in August.
The platform, dubbed Spaces seeks to target this exclusive segment of the crypto market that is left for the big players, the otc market. Typically, these segment of the market involves large trades that are transacted similar in principle to how old school brokers would get on the phones with clients to bring together buyers and sellers. In the crypto world traders sometimes arranging six-figure bitcoin trades over Skype or Telegram group chats.
Now AirSwap is offering a decentralized platform that blends together the feel of how bitcoin trades outside of public exchanges with technology aimed at simplifying the process and providing counterparties with more assurance.
With Spaces, large trading entities can create their own “Space” on the platform, and then set the parameters for trading.
According to Don Mosites, co founder of AirSwap, a space can be opened or closed, you could designate specific tokens to be traded in it. One space might trade a handful of ERC tokens, for example.
Spaces is a different iteration of the original product AirSwap was developing. To start, the firm will launch with a group of selected firms. If AirSwap can successfully attract more users to the platform, then it would open up a massive market to the firm, which was founded by former Virtu Financial trader Michael Oved.
Tabb Group, the capital markets consultancy, found the OTC market could be three times larger than the exchange market, processing as much as $12 billion daily.
OTC trades, which are not reported, allow traders to move large amounts of crypto without impacting the price on public venues. But they carry certain kinds of counterparty risk. A person making an OTC trade, for instance, has to trust the broker sitting in the middle won’t match them up with someone trying to launder funds. And sometimes it takes days for a deal to close. The decentralized nature of the platform could remedy some of those concerns, Mosites said.
“With existing OTC, you have that counterparty risk,” Mosites said. “And the on boarding process can take weeks via normal methods.”