Over-the-Counter (OTC) Trading
Web3 / cefi
Over-the-Counter (OTC) trading refers to large-volume cryptocurrency transactions executed directly between parties through centralized brokers, outside of public exchange order books. OTC desks typically facilitate institutional transactions, private sales, and large block trades where buyers and sellers negotiate prices privately to avoid market impact and slippage. These brokers act as intermediaries, matching counterparties and providing price discovery, settlement facilitation, and market expertise. OTC trading provides anonymity, customized terms, and execution of trades too large for public exchanges without dramatically moving market prices, making it essential infrastructure for institutional cryptocurrency adoption. Example: Galaxy Digital operates an OTC trading desk that facilitates multi-million dollar cryptocurrency transactions for institutional clients, providing liquidity for large Bitcoin and Ethereum trades outside public markets. Why it matters for CeFi: OTC trading enables institutional participation in cryptocurrency markets by providing discrete, large-scale liquidity. It allows major market participants to transact without public price discovery that could disadvantage their positions.
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