Huobi’s HK sister firm launches OTC trading desk for cryptocurrencies

abdelaziz Fathi

Huobi Technology, which is owned by Huobi exchange’s CEO and chairman Li Lin, is set to launch its over-the-counter (OTC) trading service for digital assets.

Huobi

The Hong Kong-listed firm has rolled out its OTC trading desk through its fully-owned subsidiary, Huobi Brokerage. The new service allows the execution of block transactions on a large variety of cryptocurrencies, stablecoins and fiat currencies.

The Huobi OTC desk, which facilitates dealing between trade parties directly, instead of relying on the supervision of an exchange, joins similar services at other top US crypto businesses.

Coinbase, Poloniex, Gemini, and Circle have already started their over-the-counter trading operations years ago. The OTC business complements those exchanges’ underlying services as many institutions were already using OTC as a proxy for crypto trading.

Despite price volatility, the move shows how the cryptocurrency space is maturing in a similar way to the $6 trillion foreign exchange market.

Upon launch, the service supports the US dollar in trading operations, but it promises to add other major currencies such as euro, British pound, and Hong Kong dollar in the near future.

A complaint service

Some clients have been invited for trial operation for the crypto OTC trading, and now the service is officially open to eligible clients. Huobi would act typically as an agency and earn commission by executing client trades.

Huobi Tech’s OTC platform finds willing buyers and sellers without tipping off the market that a big order is coming. Huobi will then get price quotes for the client who, in this case, needs to confirm that he accepts the offered settlement price for the transaction. In the last step, the OTC desk will execute the trade and settle funds or cryptocurrency into Huobi account within a certain time of receiving the client’s deposit.

Huobi Brokerage explains that it implements hierarchical risk control measures with reference to the AML requirements under HK regulation, to ensure secure and compliant service delivery.

Commenting on the news, Simon Wu, CEO of Huobi Tech, said: “After the launch of crypto-backed lending, Huobi Brokerage now offers the virtual asset OTC trading service that is low-price, convenient, compliant and secure, further enriching its line of business. Huobi Tech will continue to diversify its businesses in the future, with Huobi Brokerage as one of our key business sectors in tapping into digital asset financial services. We believe Huobi Brokerage business would grow with Huobi Tech’s other virtual asset services for synergic development.”

Read this next

Digital Assets

Himalaya Exchange customers seek release of frozen funds from DOJ

FormerFeds, a corporate defense and litigation service provider, has filed a lawsuit against the U.S. Department of Justice (DOJ) on behalf of over three and a half thousand Himalaya Exchange customers.

Digital Assets

Nubank, Circle, and Talos join forces for crypto adoption in Brazil

Nubank, the Brazilian neobank backed by Warren Buffett’s Berkshire Hathaway and Softbank Group Corp, announced new partnerships with cryptocurrency firms Circle and Talos.

Metaverse Gaming NFT

Flare onboards Ankr, Figment, Restake, and NorthStake as validators

Flare, an EVM smart contract platform known for its focus on blockchain data utility, has announced a major step in its development. The platform has onboarded leading infrastructure providers, including Ankr, Figment, Restake, and NorthStake.

Digital Assets

Sui Joins DeFi Leaders, Topping $100M in Bridged USDC

Sui, the groundbreaking Layer 1 blockchain created by the technology experts who led Meta’s Diem blockchain initiative and created the Move smart contract language, continues its explosive ascent in decentralized finance (DeFi). This week, it surpassed $100 million in bridged USDC. 

Digital Assets

Poloniex hit by UK regulator, listed as ‘unauthorised’ exchange

The UK’s Financial Conduct Authority (FCA) has added the cryptocurrency exchange Poloniex to its warning list of non-authorized companies. Poloniex, which is based in Seychelles, has experienced four hacks in the last two months and is affiliated with entrepreneur Justin Sun.

Industry News

Exclusive Markets is Proudly ISO/IEC 27001:2013 Certified by MSECB for Unparalleled Commitment to Information Security

Exclusive Markets, a leading name in the FINTECH sector, proudly announces the attainment of ISO/IEC 27001:2013 Certification by the MSECB. This esteemed certification highlights Exclusive Markets’ persistent commitment to fortifying information security within its cutting-edge trading technology. 

Digital Assets

SEC is discussing ‘technical details’ of Bitcoin EFTs ahead of approval

Discussions between the U.S. Securities and Exchange Commission (SEC) and asset managers seeking to list Bitcoin exchange-traded funds (ETFs) have reportedly advanced to key technical details.

Digital Assets

Versatus Labs Reaches $50 Million Valuation Following $2.3 Million Seed Funding Round

Versatus Labs, a peer-to-peer web services protocol aiming to help Web2 developers transition to Web3, has completed a $2.3 million funding round at a $50 million valuation led by key investors in the Web3 space including NGC Ventures and Republic Crypto. The latest funding round aims to help the company develop the ‘world’s first stateless roll-up’, Versatus LASR. This follows Versatus Labs’ recent pivot from Layer 1 solutions to Ethereum scaling solutions. 

Digital Assets

Binance ex-chief’s sentencing looms as court accepts his guilty plea

A U.S. district judge has accepted a guilty plea from former Binance CEO Changpeng Zhao (CZ) on charges related to anti-money laundering violations. The plea was accepted by Judge Richard Jones in the U.S. District Court for the Western District of Washington in Seattle.

<