circle bitcoin otc

OTC Trading Desks Raise Bitcoin’s Minimum Trading Size


After last week’s surge of trading volume and price for Bitcoin has slowed down, it seems trading activities for over the counter (OTC) trades is starting to pick up. OTC trades are completed outside of exchanges mainly due to a much larger volume than the average transaction. OTC trading desks allow for higher liquidity that your normal exchange like Binance and Kraken may not be able to provide with out causing huge swings in the market. The Goldman Sach’s backed trading desk, Circle, is available and caters to institutional investors and traders that typically trade amounts in the millions.

Jeremy Allaire, Circle’s CEO recently told Business Insider that Circle’s OTC trading desk for Bitcoin has been seeing a lot more volume and activity lately. The increase in action has caused Circle to double their minimum cryptocurrency trade requirements from $250,000 to $500,000, with the average trade being closer to $1 million. While a $1 million transaction would most likely cause a stir and be unheard of on your typical cryptocurrency exchange, it is pretty common and even on the smaller side for OTC trading desks. Allaire states it’s not that uncommon to see $100 million trades in one transactions, and that number is expected to continue to grow.


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