Binance Labs announced recently good news to the crypto community. The venture wing of Binance announced a major investment in a United States over-the-counter (OTC) crypto trading desk. Binance Labs revealed they made a $3 million venture investment into Koi Trading. When you take into account that Binance is the world’s largest crypto exchange, the sum doesn’t seem like that much.
But this investment is very welcomed by Koi Trading. Koi Trading is a San Francisco-based OTC trading operation. The company’s aim is to become a compliant global option for private crypto liquidity. Koi Trading additionally offer assistance with quantitative research, compliance consulting work and data science.
Another interesting investment from Binance Labs
Ella Zhang, the head of Binance Labs commented on the company’s decision to invest in Koi:
“Koi have assigned to themselves a hard and noble mission. The desire to bridge fiat and crypto aligns with our company’s own vision to build an infrastructure, which allows the freedom of value exchange globally.”
When it comes to experience, Koi’s founder team isn’t a step behind anyone. The company’s CEO, Hao Chen stated that the company has very experienced traders and sales personnel, which will be used to tap into many networks and counterparties in North America, Asia and the European Union. This will bridge the gap that currently divides the Over-the-Counter landscape.
China has a large preference of OTC trading. After the previous exchange regulations, banns and complications OTC is the most dominant form of trading. The majority of that trading is coordinated with WeChat, an incredibly popular Chinese chat app. The cooperation between Koi and Binance will aim to give clients a better option by rectifying the global OTC trading difficulties.
Chen states that Koi’s robust AML program, combined with extensive banking relations in the United states and solid investment from Binance Labs, they can aim to be the market nexus, which reduces trust and information asymmetry and improves OTC deal close rate.
Despite the current market conditions, the OTC market is booming outside of China. Circle’s OTC crypto trading desk has reported individual trades of more than $100 million. The CEO of Binance, Changpeng Zhao commented recently that the OTC Market has as big of a volume as the normal market.
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