South Korean cryptocurrency exchange Bithumb has launched a new over-the-counter (OTC) trading desk to facilitate the exchange of bulk Bitcoin orders.
Branded by the South Korean exchange giant as “Ortus”, the platform will execute block deals and provide a “matchmaking service catering to institutional clients.”
KYC and AML
According to the announcement, the OTC platform will maintain a strict onboarding process and institutions will have to provide sufficient KYC and AML documentation.
Ortus will operate as a subsidiary of the Hong Kong-headquartered Bithumb Global and has offices in London, Tokyo, Hong Kong, Sydney, and Buenos Aires.
Bithumb’s director Rahul Khanna said: “Institutions trading digital assets need to open accounts at exchanges and OTC desks around the world; however, there is no real solution for an aggregated liquidity provider or a trusted interdealer where institutions can trade these assets.”
“To fill this market gap, Ortus will operate to allow institutions to buy and sell digital assets through a network of global liquidity providers and benefit from a competitive and best price execution service.”
Insured custodian services
According to Bithumb, the platform will also offer insured custodian services and transfers from US bank accounts. However, it is still not clear whether the platform will execute only Bitcoin OTC trades or the exchange plan to add additional digital assets to its newly created trading desk.
Bithumb is not the first crypto exchange to open an OTC desk as many big players in the industry have launched similar platforms to lure in institutional investors. Last month, Bittrex, a major US-based cryptocurrency exchange, launched an OTC platform supporting 200 tokens. Coinbase, Binance, and Circle also have their own OTC desks to execute bulk crypto deals coming from financial institutions.
Click here to read Coin Rivet’s guide to OTC trading.