Singapore and New York based bitcoin exchange itBit has introduced its itBit Global OTC Agency Trading Desk, a service that specializes in facilitating over-the-counter (OTC) transactions.
OTC transactions are bulk trades for bitcoin that are made outside of an exchange's regular order book. It is an often used form of trading when large amounts of bitcoin are involved, in order to prevent bitcoin's exchange rate from either slipping or rising due to one large volume buy or sell.
Bobby Cho, Director of Trading at itBit, said:
“Up until now, the OTC bitcoin trading market has been operating in parallel to existing exchanges. With the itBit Global OTC Agency Trading Desk, our customers will be able to access a regulated OTC market through their existing itBit exchange accounts, matching OTC buyers and sellers through itBit's global network of clients across more than 100 countries.”
While itBit's OTC market has only just opened, the exchange indicated that it has already attracted users and liquidity.
Speaking to Cointelegraph, Cho said:
“We have users and an active market with buyers and sellers already for OTC trading. We provide OTC market participants with a two-sided market so they know exactly where they could buy and sell bitcoins in large size. Clients have been asking about this service for some time and we're excited to be able to offer it.”
itBit's Global OTC Agency Trading Desk is not the first of its kind, as SecondMarket, Kraken and Binary Financial include similar services. Cho believes his service offers a unique approach, however.
“We are a firm focused on servicing institutions, hence, our exchange has deep liquidity at the top of the order book and our OTC desk has experience dealing with institutional capital and relationships.”
Trading through itBit's Global OTC Agency Trading Desk does not charge fees on trades. To commemorate the launch of its OTC trading desk, itBit is offering US$50 in bitcoin to users that complete their first OTC trade.
In April of this year, itBit filed to become the first regulated Bitcoin bank in United States.