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Bitcoin OTC limit raised to $500,000

As one of the world’s largest liquid assets providers and OTC digital asset markets, the minimum amount of orders for the Bitcoin transaction at Circle has reached as much as US$500,000. This is 100% higher than the previous figure.

Rising OTC transactions

OTC services are targeted at high-net-worth individuals or institutions that wish to conduct large-scale cryptocurrency transactions without adversely affecting the market . [1]

In a recent exchange with Business Insider, Jeremy Allaire, chief executive of Circle Trade, revealed that since January 2018, despite the continuous reduction in 24-hour trading volume of retail exchange-driven retail exchanges, the size of over-the-counter orders has increased dramatically. rise.

Jeremy Allaire said that Circle Trade currently has an average of nearly $1 million in OTC orders, with a few up to $100 million. However, the corresponding 24-hour trading volume on retail exchanges dropped from 70 billion U.S. dollars at the beginning of the year to nearly 20 billion U.S. dollars. He further added that the average size of OTC orders will continue to rise.

Institutional investors may be the most important driving force

One of the reasons behind the rise in OTC orders should be the increasing interest of institutional investors in cryptocurrencies. At the same time, it may also be due to the extra security provided by off-exchange transactions.

It is worth noting that off-exchange trading is ideal for those who want to trade a large amount of cryptocurrency, because it is not necessary to entrust the exchange to trade. And once there is news of an exchange violation, the over-the-counter orders will usually surge.

In addition, over-the-counter trading frees investors from the impact of falling prices and also frees them from tedious operations with dozens of orders.

Circle Trade, backed by investors such as Goldman Sachs and IDG Capital, is not the only platform that offers strong OTC transactions. Interested investors can also choose other products in the newly launched OTC products from DRW's Cumberland and Winklevoss twin brothers. Despite fierce competition, Circle’s monthly password transaction volume has exceeded the $2 billion milestone.

After Circl’s acquisition of the exchange’s Poliniex for US$400 million, the volume of cryptocurrency transactions surged significantly. At present, it seems that the acquisition will help the company expand, increase the new currency, and provide investors with a stronger legal currency trading mechanism.

With the significant increase in popularity and trading volume, Circle Trade is now also expanding its influence in Asia.

The Dublin-registered company announced in March 2018 that it is recruiting 100 new employees to improve Poloniex's technology, operations and customer support. In addition, the company also mentioned plans to employ 25-35 employees to support its business in Asia.

Notes    (↵ returns to text)High-net-worth individuals generally refer to individuals with a net asset value of more than RMB 6 million (US$ 1 million). They are also social groups with high investment assets such as financial assets and investment properties. ↵