Binance Labs just revealed that it invested $3 million into Koi Trading which is an over-the-counter crypto trading desk.
Even if this amount seems enormous for us, for Binance it’s just a small sum, but still important, without a doubt.
Koi Trading aims to enhance private crypto liquidity
Koi Trading is an OTC trading operation from San Francisco with the main focus to become the go-to option for private crypto liquidity.
Koi also assists with data science, compliance consulting work and quantitative research.
Head of Binance Labs Ella Zhang, said: “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.”
Koi boasts an experienced team of founders which include CEO and founder Hao Chen who said that their team would join forces with Binance to bridge the gap that is currently dividing the OTC landscape in North America, the EU, and Asia.
OTC prevalence in the cryptosphere
OTC trading became prevalent in China especially after the previous bans, crypto-related regulations and all the complications that arose from these.
For the moment, the majority of the Chinese OTC crypto trading is coordinated via a Chinese chat application that’s called WeChat.
Binance’s partnership with Koi Trading will definitely help to rectify the OTC trading issues at a global scale, and it will provide a better option for interested clients.
According to Chen, with Koi’s robust AML program, their huge banking relations in the US, strong trust among Greater China and now, with Binance’s investment, the company aims to become the “market nexus” that improves crypto OTC deal close rate.
The OTC market is not only developing at a high pace in China but also outside of the country, as reported by CCN. This is happening even amidst the bear market that has governed the entire 2018.