Binance Labs Invests in OTC Trading Desk, Koi

Binance, the world’s largest exchange, has announced they’ve invested $3 million in over-the-counter (OTC) trading platform, Koi.  They’re eager to bolster Koi to help meet their own goals of broadening investment opportunities in the crypto market.

San Francisco-based Koi Trading is an OTC desk geared mainly towards institutional investors and wealthy individuals.  Binance seems to have selected Koi (which also has a branch in Hong Kong) for their solid track record.  Koi CEO Hao Chen expresses his confidence:

“With Koi’s robust AML program, extensive banking relations in the US, investment from Binance Labs, and strong trust amongst counterparties in the Greater China, we aim to be the market nexus that reduces trust and information asymmetry and improves cryptocurrency OTC deal close rate”

For crypto to succeed in China, the U.S., or anywhere in the world, transparency is of the essence

Currently, OTC trading is especially popular in China, where the government has banned exchanges. Many Chinese traders use widespread social apps like WePay to negotiate transactions. While the government has made moves to crack down on this trading as well, indications are that it is still prevalent in the country.

Meanwhile, Genesis, Cumberland, and Circle are making their records more transparent in an effort to push towards an ETF

All three manage a great deal of OTC trading and will join forces to share their data. And this in turn could help firms trying to get SEC approval for an ETFs, as the SEC wants thorough evidence of crypto security.

However, transparency could help allay concerns about price manipulation.  Specifically, this new data feed will help VanEck, who is currently in the process of a crypto ETF application.  Their project MV Index Solutions will use the OTC data to create a Bitcoin (BTC) OTC index.

Binance, OTC platforms, and VanEck all have a common goal

And working simultaneously on their individual projects, they may ultimately help each other’s causes.  As Ella Zheng of Binance Labs says, in response to the exchanges recent funding,

“Koi Trading’s mission is to bridge fiat and cryptocurrencies in a compliant manner. This aligns with our broader vision at Binance to build the infrastructure which provides the freedom of value exchange globally”

The Chinese government claims to have implemented the exchange ban earlier this year in order to protect Chinese citizens.  Similarly, they perceive many pitfalls to speculative investment in cryptocurrency.  But considering how blockchain-friendly the country has remained, greater regulation could return China to their former place as one of the crypto capitals of the world.

 

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The post Binance Labs Invests in OTC Trading Desk, Koi by Eric Van Orman appeared first on BittPress – Cryptocurrency News, Bitcoin & Ethereum Blockchain News.