Binance Labs has announced that it has made a significant investment in Koi trading, an OTC (over the counter) Crypto trading desk in the United States. Koi trading is a San Francisco based OTC trading desk.
Partnership In line With Binance long-term Goals
Binance Labs made this announcement through a press release which said that it made an investment in Koi Trading to the tune of $3million. This sum may be negligible to the Crypto exchange which is currently the largest in the world but is quite significant in the grand scheme of things.
Koi Trading aims to become the standard when it comes to private Cryptocurrency liquidity in the globe. The trading desk also provides assistance when it comes to the provision of quantitative research, data science and work in compliance consulting.
In her comments about Binance Labs decision on investing in Koi Trading, Ella Zhang stated that Koi’s vision of creating a bridge between fiat and digital currency compliantly was in line with the firm’s long-term vision. This long-term vision the Zhang said was of building infrastructure that creates the freedom for global value exchange. Ella Zhang is the head of Binance Labs.
Better Option For Users
Koi Trading’s CEO and founder Hao Chen stated that its team of experienced sales personnel and traders will be coming together to take advantage of the large network of counterparties found in regions like the European Union and North America as well as Asia. In this way, he said that the firm will be able to reduce the gap within the OTC landscape. Koi’s founders comprise of a highly experienced team of individuals within the field.
The prevalence of OTC trading in the Chinese market is very high, driven by the numerous bans on Crypto exchange and complications with the set regulations. As at the moment, most of the OTC Crypto trading taking place in the Chinese market is done through WeChat, a Chinese chat app. This method makes it possible for users to have a professional option that they can count on.
The collaboration between Binance Labs and Koi Trading is expected to help solve the current problems experienced in OTC trading across the globe, providing a better option for users.
Prevalence Of OTC Trading
The chief executive of Koi Trading has said that the firm is looking on capitalizing on its robust AML program, its extensive network of finance professionals within the banking industry in the United States, its strong relations with partners within China and its newly formed partnership with Binance to become the market standard.
Through leveraging on these connections Chen said that Koi trading will be able to improve the close rate of OTC deals while reducing the irregularities that affect trust and information within the field.
China is not the only place where OTC trading has taken over, there is also a rising trend of OTC trading beyond China’s borders despite the persistent bear market that is plaguing the Crypto space.