Major Player in the OTC Crypto Market
A growing number of institutional investors are now taking part in the OTC cryptocurrency market. The company has over a thousand partners, including hedge funds and private banks. Circle has recently acquired the Poloniex exchange, a popular crypto exchange that has been operating for almost five years. The company has recently upgraded its identity verification process, as well as improved customer signup. It also added several new tokens, including BTC and ETH.
After its IPO last year, Circle’s shares rose more than 50%. While this is an extremely high price for the company, it is still a solid performance, especially compared to its peers. However, it has been quite volatile in recent weeks, with some traders feeling uneasy about the market. A few factors have made Circle a solid option for investors. Its impressive retention figures and recurring trade volumes have nearly doubled since September, which could point to underlying stability. It may also help quell retail volatility, since institutional users are more likely to have larger portfolios.
The company’s continued expansion has been largely a result of its recent performance. It has attracted a record number of institutional clients, and now has 24 hour coverage in the United States, Europe, and Asia. Unlike traditional trading platforms, Circle offers a direct-to-investor model that eliminates the need for an intermediary. With the increasing popularity of OTC trading, institutional investors are increasingly choosing this method of trading for their investments. Coinbase launched its OTC services for institutional investors in November.
Will Circle Be a Major Player in the OTC Crypto Market?
While the volume of OTC trading is not publicly reported, Circle’s OTC crypto desk has handled over $24 billion in trades last year. The firm has partnerships with over 1000 institutional clients and is able to facilitate more than $100 million in individual trades. A strong AML program can help reduce information asymmetry and improve the quality of transactions. The company has recently raised $80 million through the OTC market, which is a great result for institutional investors.
While it is still too early to say whether Circle will be a major player in the OTC crypto market, it’s clear that the company is doing well. With more people adopting cryptocurrency, it is now possible to trade with the world’s currency. This is not only beneficial for institutional investors, but it also helps the community. And because it’s a decentralized network, there is no risk involved in using it.
Circle’s OTC crypto business has grown rapidly, despite the fact that its market is not publicly disclosed, the company’s performance in 2018 adds to the chorus of optimistic voices. The firm’s recurring trade volume has doubled over the past nine months, making Circle a solid example of a digital asset investment platform. But this is far from the only benefit of OTC crypto trading. Rather, the growth in the company’s volume is the biggest reason for investors to take the OTC route.