Coincheck Releases OTC Crypto Trading For Institutions
When it comes to the so-called “crypto-winter,” there is no doubt that Coincheck has not been in better shape. The Japan-based exchange was hacked for about $530 million worth of XEM last year. As a result, its services were completely shuttered by almost everyone and everybody in the industry.
Revitalizing Its Reputation
Interestingly, a change in management in the company took place after a pricey acquisition by the Monex Group. The latter, in particular, is a trading platform that started a newfound push in an attempt to return to the crypto economy of Japan with a fresh, new face. To jumpstart this move, the establishment of an OTC (over-the-counter) trading service is going to be introduced to institutional players. Through this, the company is hopeful it is going to revitalize its reputation in the crypto space.
Coincheck will reportedly launch a “large-scale” OTC trading service, though a release date has yet to be announced. This is according to a press release from the company. Although the details have been kept under wraps, especially with the company being tightly-lipped on details about fees, the firm did not necessarily reveal any information about the upcoming service.
One thing is for sure, though – the service is going to initially trade Bitcoin. Apparently, the world’s leading crypto will be traded at “attractive prices” and this will be done before the company goes into expanding into other cryptos if and only if there is a demand.
Not Exactly A First In The Crypto Space
It seems Coincheck wants to offer this service directly to institutional clients, especially since all promotional images suggest transactions ranging from 50 BTC to 225 BTC. These are trade sizes with a value that is believed to be in the hundreds of thousands.
While the company’s service could only make a small splash in the crypto pond, the decision to bring forth an OTC service cements the idea that there is little to zero abounding institutional interest towards the asset class. Otherwise, the firm would not really venture on this kind of move.
Moreover, the Japanese crypt exchange is really far from the first to be successful in making a move into this industry. It should be noted that BitGo, which is a Palo Alto-based industry colossus, revealed its partnership with Digital Currency Group’s very own Genesis Trading earlier this year. The partnership resulted in the introduction of an OTC desk, which is said to result in an industry milestone for its use of BitGo’s titular cold storage tech.