Binance.US Rolls Out An OTC Desk With A $10,000 Minimum Trade Value
The US branch of the largest crypto exchange in the world, Binance US has announced the introduction of an over-the-counter (OTC) platform to serve large trades worth $10,000 and above.
According to an official statement released by the company, the new feature will enable Binance users to easily process orders worth at least $10,000 directly amongst themselves.
We have launched our new OTC Trading Portal!
🔸Reduced market impact
🔸10,000 $USD equivalent minimum trade
— Binance.US 🇺🇸 (@BinanceAmerica) May 11, 2020
Over-the-counter trades involve customers negotiating with each other on orders which are not indicated in the public order books exchanges, Binance clarified through its FAQ. in this regard, the platform will help the clients to easily move huge orders with utmost privacy and with no any effect in the market.
The platform was introduced by Binance America CEO, Catherine Coley, during Consensus: Distributed on Monday. According to Coley, the service could not have been rolled on at an opportune time when there is high interest in Bitcoin as the halving event is just days to go.
At the moment, the OTC platform is supporting 12 cryptos and the US dollar (USD). However, for one to be permitted for USD withdrawal, you must pass Level 3 Fiat Verification that contains very tough and stringent KYC rules within the platform. The communique also clarified that every settlement will be directly deposited to the existing client’s Binance.US accounts.
Whereas the OTC platform will not charge any fees, spreads will be applied. This indicates that the price provided will either be higher or lower compared to the market prices, determined by if the client is buying or selling.
The new platform will be accessible to Binance US clients in 37 states where the exchange operates. However, Coley stated that the firm was working on getting the requisite operation licences in the remainder of the 13 states.
Coley explained that the launching of the OTC platform will help in complimenting Binance.US various trading options. Binance had previously launched the OTC trading platform for the global exchange clients in January last year.