Over-the-Counter Trading
Direct, off-exchange trading between two parties, often for large orders.
Direct, off-exchange trading between two parties, often for large orders.
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Sep 2026 · Wynik świeżości: 50%
What is Over-the-Counter Trading?
Direct, off-exchange trading between two parties, often for large orders.
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- concept
- Type
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OTC desks match institutional buyers and sellers, negotiating price privately, often at a small premium/discount to market. Settlement can be on-chain (wallet-to-wallet) or via custodial arrangements. Trades are typically large (seven figur
OTC lets whales and institutions transact large sizes without slippage or market impact. It is a key channel for token launches, treasury sales, and institutional accumulation. Its opacity is a trade-off: privacy and size, versus the transp
Knowledge Graph
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1. What Is OTC Trading
OTC (over-the-counter) trading is the direct buying or selling of assets between two parties without a public order book — used for large crypto trades that would move the market on exchanges.
2. How It Works
OTC desks match institutional buyers and sellers, negotiating price privately, often at a small premium/discount to market. Settlement can be on-chain (wallet-to-wallet) or via custodial arrangements. Trades are typically large (seven figures+), and desks manage counterparty and settlement risk. Some OTC flow now routes through RFQ and intent-based systems on-chain.
3. Why It Matters
OTC lets whales and institutions transact large sizes without slippage or market impact. It is a key channel for token launches, treasury sales, and institutional accumulation. Its opacity is a trade-off: privacy and size, versus the transparency of on-chain markets.
4. Key Facts
- OTC desks include Genesis-style firms and exchange desks
- Pricing is usually market +/- a negotiated spread
- Settlement risk is managed via escrow or trusted counterparties
- On-chain RFQ systems (e.g., 1inch RFQ) bring OTC to DeFi
5. Related Concepts
- market-maker
- institutional-custody
- order-flow
- market-structure
Frequently Asked Questions
What is Over-the-Counter Trading?
Direct, off-exchange trading between two parties, often for large orders.
How does Over-the-Counter Trading work?
OTC (over-the-counter) trading is the direct buying or selling of assets between two parties without a public order book — used for large crypto trades that would move the market on exchanges. OTC desks match institutional buyers and sellers, negotiating price privately, often at a small premium/di
Why does Over-the-Counter Trading matter in Web3?
- institutional-custody - order-flow - market-structure