Huobi exchange has announced that it has launched a regulated over-the-desk trading desk. The exchange, which is among the five largest globally, made the statement through a blog post. Notably, the measure will be limited to institutional investors and high net worth individuals.
The Huobi OTC Desk, as the desk will be formally called, is built on Huobi’s Gibraltar FSC-issued Distributed Ledger Technology (DLT) license. This move is certainly an indicator of the sustained high investor interest in digital assets. Huobi is undoubtedly a major exchange with versatile trading and storage options. This move will give investors more flexibility in conducting specialized trading.
Jeff Adams, the Senior Sales Manager for Huobi Global explained the move as follows:
“We see a lot of appetites out there from players in more established financial markets when it comes to digital assets but many are still uncomfortable jumping into unregulated trading environments… We also see an unfilled need for services aimed at those looking to make large volume transactions. Huobi OTC Desk is a big step forward to filling both of those needs.”
As such, investor confidence and interest in crypto markets is the primary motivation. Great products are often simple enough to solve specific market needs. The Huobi OTC Desk is exactly a supplier’s adjustment to the needs of a segment of the market.
OTC is all About Confidence and Assurance
High net worth individuals need a higher level of assurance because of the volumes they transact in. The fact that exchange has made the accommodation necessary to cater for such clients is a novelty. This is because Huobi stands to benefit from the increased trade activity overall. Moreover, with the rebound in Bitcoin prices of late, high net-worth individuals and institutional investors are looking to make a splurge given the new found confidence and momentum in coin markets.
Huobi has a significant footprint in the Asian market and is looking to consolidate its market share even further. The Chinese exchange has notably acquired a majority stake in Japanese crypto exchange BiTrade. This happens to be one of the sixteen regulated exchanges in the country. Moreover, Huobi acquired Hong Kong electronics manufacturing firm Pantronics Holdings for about $70 in 2018. This is all indicative of a consolidated effort to expand and diversify company operations.
Fidelity Investments in OTC Desk Trading
This kind of operation is not limited to Huobi only as there are other exchanges and investment firms who have the possibility. This is because such institutional investors have interest as well in making the most of the likely cryptocurrency bull market. Accordingly, it makes all economic sense to have the measures in place. This process is not only convenient for the investment firms and exchanges but also for the investors. This is because the latter group will get premium investment advice at a fee on how best to maximize their earning possibilities.
Fidelity investments group is one such investment firm. The firm has recently stepped into crypto space by enabling OTC trading. This makes it possible for the investors who are part of the group to trade in cryptocurrencies like Bitcoin seamlessly. As such, these investors don’t have to go through the rough and tumble of mainstream exchange trading. This is a convenience that such high net-worth individuals definitely look for.
Fidelity investments is a successful trading enterprise with a large asset portfolio valued at an impressive $2.46 trillion. This certainly makes it one of the largest asset managers in the world. Accordingly, the entry of Fidelity into this enterprise shows just how much credibility crypto investments now have. This move even contributed to the surge in Bitcoin prices of late. Huobi is certainly timely in its decision to also have an OTC desk option.