A Singapore-based crypto exchange Huobi has added Ripple’s XRP on the list of other cryptos traded on its OTC trading platform. XRP will be joined to other digital assets like Bitcoin (BTC), Ethereum (ETH), Eos (EOS), and Huobi token (HT) which are already traded on the platform.
According to Livio Weng, the CEO of Huobi Global, OTC trading is very important to Huobi exchange because it is a platform for the exchange users who prefer peer-2-peer trading. The platform was set to bridge the exchange gap between fiat and digital currencies. It also serves as an escrow to users who use the platform to run ads for exchanging fiat and digital currency.
Huobi is a Chinese cryptocurrency exchange based in Singapore, with offices in Hong Kong, Korea, Japan, and the United States. It became a publicly listed Hong Kong company, following a ban on bitcoin exchange by the Chinese government, Huobi stopped bitcoin transactions adjusted its business and became a blockchain consulting and research company. Now it is the eight largest crypto exchange by daily trading volume.
Over-the-Counter trading is currently becoming rampant in the crypto space because it allows more flexibility than standardized exchange trading platforms. According to the report, the amount of Bitcoin traded on OTC platforms have been on the increase, the news is that large buyers use OTC-brokers to obtain a large volume of bitcoin.
The main OTC trade users are known to be high net-worth individuals and corporate entities that operate with their own trusted brokers who connect them with bitcoin sellers. Most of these bodies prefer operating through OTC platforms to obtain digital assets since it is faster and easier to buy a large volume than in normal exchange platforms.