CoinDCX launches OTC desk for institutional crypto trading in India
The facility supplements CoinDCX’s existing trading platforms, CoinDCX and CoinDCX Pro, and is aimed at expanding the company's user base and trading volumes, according to a statement released on Wednesday. Institutional clients will now be able to execute bulk orders for bitcoin and other crypto tokens without worrying about price volatility.
- An OTC desk is generally used when a certain trade is not possible on exchanges. That may be because the asset doesn’t trade on the exchanges at all. Instead of matching buyers and sellers, an OTC desk acts as a dealer for anybody looking to trade a given asset. If the order is large, a trader may choose to trade “over the counter” to minimise market-related risks.
“The average ticket size for such services start at Rs 30 lakh plus investments. With this, our target audience lies with an entity which trades in and out of crypto for large quantities,” said Sumit Gupta, cofounder of CoinDCX. “This segment is more concerned about price certainty and wants to minimise slippages.”
India in crypto overdrive
Indian family offices and wealthy individuals are joining the cryptocurrency bandwagon in droves, and crypto exchanges are welcoming them with personalised services, ET reported on June 23. They have seen an uptick in investments — upwards of Rs 1 crore — by family offices and wealthy individuals, amid increasing global institutional acceptance of crypto.
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“Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42% of transactions sent from India-based addresses vs 28% for Pakistan and 29% for Vietnam,” it said. “Those numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organisations.”
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Gupta of CoinDCX corroborated these findings.
According to him, Indian firms want some part of their assets in cryptocurrency. Homegrown startups and their founders too are showing interest in broadening their portfolio to include this asset class. “We have also seen small proprietary firms or individuals make money by trading across exchanges — utilising price differential to make arbitrage profits,” he said.