Binance and Koi Trading
In a press release yesterday, Binance Labs revealed that it invested $3 million into Koi Trading. A small sum for the world’s largest cryptocurrency exchange, but a notable one nonetheless.
Koi Trading is an OTC trading operation, headquartered in San Francisco, CA. Moreover, their goal is to be a compliant global option for private cryptocurrency liquidity. Also, Koi offers assistance with data science, quantitative research, and compliance consulting work.
Commenting on the firm’s decision to invest in Koi, Head of Binance Labs Ella Zhang, says that Koi Trading’s mission is to bridge fiat and cryptocurrencies in a compliant manner. Also explains that this aligns their broader vision at Binance to build the infrastructure which provides the freedom of value exchange globally.
Koi has an experienced team of founders, including CEO and founder Hao Chen. He added to it saying that their team of experienced traders and sales personnel will join forces. They will join to tap into vast networks of counterparties in North America, Asia, and the EU. Thus, bridging the gap that divides the current OTC landscape.”
OTC Prevalence in Cryptocurrency Markets
OTC trading in China is prevalent, even after all the previous crypto exchange bans, regulations, and complications. Currently, the Chinese chat app, WeChat, coordinates the majority of Chinese OTC cryptocurrency trading.
Binance Lab’s collaboration with Koi Trading helps rectify OTC trading difficulties globally, giving clients a better option. Chen said:
With Koi’s robust AML program, extensive banking relations in the US, investment from Binance Labs, and strong trust amongst counterparties in the Greater China, we aim to be the market nexus that reduces trust and information asymmetry and improves cryptocurrency OTC deal close rate.
The OTC market is booming outside China, as well, even among the current bear market. Earlier this year, Circle’s OTC crypto trading desk was seeing individual trades to the tune of more than $100 million.
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