According to a blog post published on Wednesday, the 15th of May, Huobi has unveiled an OTC (over the counter) trading desk aimed at institutional investors.
The New Platform To Facilitate Trading Through Huobi Technology
Gibraltar FSC (Financial Services Commission) fully regulates Huobi’s new Crypto trading platform, which goes by Huobi OTC Desk. Through the new platform, Huobi’s users will be able to access major trading in both Crypto-to-Crypto and fiat-to-Crypto transactions. The firm has stated that its current OTC retail products on otc.hbg.com facilitate P2P (peer-to-peer) trading through Huobi Global. In contrast, the new OTC desk will be facilitating the main OTC process through Huobi Technology which is the firm’s Gibraltar OTC trading entity. This entity is also fully regulated.
Huobi Global’s Senior Sales Manager, Jeff Adams, has said that the launch of the new OTC offering has been as a result of the need by investors for large volume transactions. In his address about the new platform Adams said that Huobi is seeing significant need for digital assets from investors within the established financial markets. He stated that the reason such investors are wary of the space was due to the unregulated trading environments.
Adams added that the firm is also aware of the untended demand for services which are focused on investors looking to carry out large volume transactions. To this end he said that Huobi OTC Desk is a step towards the fulfilment of both of these demands.
Huobi Announces Future Plans For The Ecosystem
This announcement was made during a special meet up, “Breakfast with Huobi”, which took place in New York. Going by the announcement, the newly launched platform will be supporting major digital currencies in the market inclusive of BTC (Bitcoin), and ETH (Ethereum). The fiat currencies supported include the USD (United States Dollar), the GBP (British Pound Sterling) and the EUR (Euro).
This announcement comes in the wake of the firm acquiring a DLT (Distributed Ledger Technology) license late last year from the Gibraltar FSC. This license has made it possible for the firm to draw in institutional investors. Duing the event, the firm’s executives also revealed other additional updates and future ideas for the development of the Huobi ecosystem.
Among the announcements made was the planned upgrade of the firm’s stablecoin HUSD to HUSD 3.0. The HUSD stablecoin is pegged on a single US dollar and has been backed by various other stablecoins in the market. As a result of the planned upgrade, other new features are expected to be available. Among the features expected are futures trading and lending.
Increased Demand For OTC Trading
Earlier this year, the firm revealed that its P2P OTC Desk was among the most traded platforms in the world. The Desk facilitates OTC transactions using Ether, Bitcoin, EOS as well as other major stablecoins such as ether, Ripple and Huobi Token.
There has been an increased demand for OTC trading of late. Binance exchange, one of the largest exchanges in the market, reported that most profits seen in the first quarter of 2019 was as a result of OTC trading.