Circle’s OTC Crypto Trading Desk Handles $24 Billion In Transactions In 2018
The 2018 OTC Crypto Trading Desk For Circle Handled $24 Billion In Transactions
Even with all of the cryptocurrency setbacks this year, Circle managed to flourish in their over-the-counter business. According to a blog post from the company, their OTC trading desk was the host of $24 billion in trades. Considering that these volumes are not usually reported to the public, this number is fairly substantial.
Based on the statement, there were 600 counterparties performing the 10,000 OTC trades. At this point, with these numbers, Circle may be accurate in their statement – that they are a “core liquidity provider to the entire crypto ecosystem.”
Right now, there are over 1,000 institutional clients partnered with Circle. The firm also stated,
“This year, we anticipate further incremental growth in institutional adoption catalyzed by stablecoin usage, advancements in institutional custody solutions, increasing regulatory clarity particularly in the [United States], and improvements and innovation in core crypto infrastructure.”
When investors participate in OTC trading, they have the opportunity to forgo cryptocurrency exchanges, and participate with each other instead. These types of services are appealing to institutional investors that are looking to get into the crypto industry, considering how frequently these types of investors gravitate towards firms like Coinbase and Circle.
Back in December 2017, OTC Bitcoin markets seemed to get the majority of the liquidity that institutional investors brought in at that point. However, investments are starting to increase for these types of trading desks as OTC funds like Coinbase’s thrive. Coinbase surpassed Grayscale’s Bitcoin Investments Trust in BTC trading volume. Since OTC markets only are open for about 31% of the annually tradable hours, these numbers are significant.
Along with Circle’s victory in their OTC trading volumes, Circle managed to acquire Poloniex last year, which is one of the oldest crypto exchange to come into fruition after five years of operation. Not long after, the exchange had multiple upgrades to meet the regulatory needs for functioning in the industry. In 2018, this platform managed to add multiple tokens, which included EOS, BAT, SNT, KNC, LOOM, FOAM, MANA, BNT and USDC. However, those additions came with a lot of delisting as well.
Circle managed to use their time in 2018 to bring in the Circle Asset Framework, which allows for easy decision making when reviewing assets that are brought up within Circle’s products. To promote more trading, Circle was one of the few trading desks that allowed for the pre-fork trading before Bitcoin Cash split into the two blockchains.
Among Circle’s acquisitions in 2018 was SeedInvest, which is the largest crowdfunding platform found within the United States. Right now, it is still working on regulatory approval, but it shows Circle’s ambitions for crypto.
In a statement, Circle said,
“We believe more traditional assets will become securitized through tokenization, and that includes shares in companies, debt and other lending contracts, and other forms of property and value.”