Major cryptocurrency exchange Coinbase will soon start an Over The Counter (OTC) trading desk to woo institutional investors. According to reports, there is no official confirmation from Coinbase on the OTC trading desk but if true, the development seems like yet another attempt from the exchange to attract institutional investors to its fold. The OTC trading will be made available for Coinbase Prime customers.
OTC block trades are extremely popular among big investors and clients such as crypto hedge funds and trading firms. A lot of experts have also cited that OTC trading volumes are very large and the current market data doesn't accurately take into account the extent of OTC crypto trading.
A lot of the big players are now looking at targeting institutional investors for cryptocurrency trading. While Coinbase has been making rapid strides in this direction, even traditional finance biggies such as Nasdaq and NYSE (through Bakkt) have announced plans to launch Bitcoin derivatives trading. Let's see whether Coinbase confirms its plans anytime soon!