The field of digital asset trading has been heavily “dominated” by cryptocurrency exchanges, even though the over the counter (OTC) market is significantly larger. The problems of liquidity and fast settlements has brought about problems to large money investors in the field when using exchanges hence the need for OTC market brokers and traders to ease the strain.
SigOne Capital is an institutional grade, over the counter (OTC) platform for trading crypto assets that have been in development in the past year and is aiming to solve the problems of liquidity and quick settlements of trade.
The platform is set to offer its high net individual clients, institutional investors and market makers with direct access to the global cryptocurrency liquidity pool. Furthermore, the announcement of the launch of SigOne assured the users of a seamless and secure platform to move their digital asset funds. The organization focuses on bridging the widening gap between traditional asset markets and the cryptocurrency market.
Bitcoin exchange traded value stands at averagely $5.3 billion USD per day for the past year. This huge volume of trading does not take into account the over the counter exchanges that may be functioning with close to 2X-3X the exchange-traded volume. Most of the data for OTC trades are recorded individually which makes it hard to put a number on it. TABB Group, an international research company, has disclosed in its extensive analytical report that the over-the-counter market of bitcoin is significantly larger than the global bitcoin exchange market.
The SigOne Capital OTC market
Over the counter, markets are typically made for large trades that can otherwise not be filled by exchange without practically causing a spot price change. The trade is completed by traders and brokers with the deep liquidity off the exchanges to avoid affecting the spot price of the digital asset.
Imagine you wanted to buy $100 million worth of Bitcoin from an exchange. For such a huge order to be filled, you will affect the market price of the asset and your order will be filled at a higher price. To avoid these traders prefer using OTC exchanges to complete such a transaction.
SigOne Capital is aiming to create the world’s first traditional exchange backed trading desk. The company is working on solving the problems relating to cryptocurrency assets trading and bridging the traditional asset sector to the digital asset sector. SigOne Capital is working with a couple of institutional investors in the digital currency world to get a clear picture of what to build the OTC crypto asset trading platform around.
The major problems discovered from the company’s interaction with the institutional investors include;
- Access to Global Liquidity: Directly connected to a global network of trading partners and pools of liquidity
- Institutional Grade Service: Best in class Institutional KYC/AML compliance and on-boarding
- Safe & Secure Trade Flow: Fiat is always protected
- Timely Trade Settlement: Seamless 24 hour trade settlement
Partnership With DV Chain
The common saying, “If you want to go far, go with others”, is playing its role as SigOne secured a partnership with DV Chain, an affiliate company of proprietary trading organization DV Trading and IIROC Dealer Independent Trading Group. The partnership is aiming to make the global crypto liquidity pool infrastructure available to the traditional assets markets to ease adoption. The two companies came together to address the issue of transparency of the trading platform and the security of the funds too.
The two companies working together and placing their resources, networks, and knowledge in one basket offers a stronger base to actually improve the OTC market liquidity in cryptocurrency trading.
Speaking on the latest partnership with DV Chain, the SigOne Capital team praised DV Chain as “one of the most impressive crypto trading infrastructures”. The statement continued,
“We are very impressed with the knowledge and capabilities that the team have brought to the crypto space from traditional markets and are excited to elevate the level of sophistication in the OTC space.”
In their statement, the DV Chain team is equally as ecstatic at the partnership given the close relationship the co-founders of SigOne Capital, Michael, and Genia, have with the Shorcan DCN (Digital Currency Network) crypto trading desk. The statement further dwells on the partnership stating,
“Both SigOne & DV will greatly benefit from this partnership, from our combined acumen in capital markets, blockchain technologies and crypto asset trading, we will be able to provide a service that doesn’t exist in the market today”