Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
crypto
Crypto ‘over-the-counter’ or OTC trading provides a private means of trading larger amounts of cryptocurrency without relying on a public exchange order book. This guide explains how crypto OTC trading works, how quotes are created, how settlement is handled and how services like the Crypto.com OTC desk support institutional and VIP users.
Crypto OTC trading refers to the direct purchase or sale of digital assets with a counterparty. OTC stands for ‘over the counter’. In this model, a trade takes place privately instead of being displayed on a public exchange order book.
A trader and an OTC desk agree on a quote for a specific size. The trade is settled according to the agreed terms without showing the order to the wider market. This structure may help prevent price slippage and reduce market impact when handling large amounts.
OTC trading may appeal to institutional traders, high net worth individuals or companies that manage significant crypto allocations. It allows discussions around pricing, settlement timing and block-trade size that a standard spot order can’t always support.
Every OTC trade follows a step-by-step process. It starts with an inquiry where the user indicates the asset and size they want to trade. The OTC desk reviews market depth and prepares a quote. The quote lasts for a set period and may be accepted within that window.
This initial inquiry process is often referred to as a Request For Quote (RFQ), which facilitates the negotiation of block trades, contrasting with automated, instantly executable portal quotes.
Once accepted, the trade is executed at the quoted price. The assets then move through an agreed settlement method. Some users want immediate settlement while others prefer a structured cutoff. When the settlement completes, the trade is finalised.
An OTC trade often involves several parties. These include the OTC desk, external liquidity providers and the client who submits the inquiry. Some platforms also offer API connectivity to automate inquiries and quotes.
RFQ is used when a trader wants a customised quote rather than a standard instant quote. RFQs often support larger block trades or trades that need longer validity periods.
An RFQ allows the trader to specify size and settlement requirements. The OTC desk responds with a tailored quote. On Crypto.com, this can happen through the OTC API or by working directly with the OTC desk team.
RFQ trading may help users who want flexibility around timing or who prefer a defined quote window for internal approvals or operational processes.
OTC and exchange trading work differently. Exchange trades appear on a public order book where other participants can see available liquidity. Large orders may move through several price levels, which can change the final execution price.
Feature | Crypto OTC trading | Exchange trading |
Visibility | Private trade directly with a counterparty (OTC desk). Off the public order book. | Public order book where other participants can see liquidity. |
Pricing | Single quote backed by pooled liquidity. Reduces slippage for large orders. | Orders may clear multiple price levels, which can change the final execution price (slippage). |
Execution | Controlled finalisation of a pre-agreed quote. | Often near-instant market orders. |
Privacy | High discretion. Orders do not signal intent to the wider market. | Orders can signal intent to the market. |
Fees | Often no trading fees, though spreads may apply. | Usually incurs maker or taker fees. |
Best suited for | Institutional investors, HNWIs or corporations moving significant volumes; block trades; those seeking controlled pricing and flexible settlement. | Standard retail and large volume transactions where immediate, market-driven execution is the primary goal. |
OTC trades happen privately. The desk provides a single quote backed by pooled liquidity. While exchange trades are often near-instant market orders, OTC execution is the controlled finalisation of the pre-agreed quote. This may reduce slippage for large orders because the trade isn’t clearing multiple levels on a visible book.
Privacy also differs. Exchange orders can signal intent to the market. OTC trades occur directly with the desk. Execution can feel more controlled for users who handle significant volumes.
Fees differ as well. Exchange trades usually incur maker or taker fees. OTC desks often have no trading fees, although spreads may apply.
Choosing a crypto OTC platform involves several considerations. Regulatory oversight is one. Many institutions prefer providers with strong compliance standards.
Liquidity depth matters because OTC trading depends on stable pricing for larger block sizes. Asset coverage also affects the experience since desks supporting a wide range of crypto and fiat pairs are important for multi-asset strategies.
Settlement speed and workflow design can influence how efficiently a treasury team manages funds. Execution speed is also a factor, as is the cost structure, meaning low or zero trading fees and competitive spreads.
OTC platforms differ in their features. Some provide API access for automated processes and others offer desk support that aligns with institutional communication needs.
Step 1: Eligible users can access the OTC portal under the Trade tab on the Crypto.com Exchange.
Step 2: The portal displays available pairs and a quote field where the trade size is entered.
Step 3: The system provides a quote that typically remains valid for about ten seconds. Larger block trades or longer quote windows involve the RFQ process or the OTC API.
Step 4: The trade moves forward once the quote is confirmed. Users can choose immediate settlement or the Settle Later option. Settle Later groups multiple trades into one net settlement, which may support treasury planning.
Step 5: After settlement finishes, the crypto or fiat appears in the account wallet and the OTC portal displays the completed trade in the history section.
The Crypto.com OTC desk supports many fiat and crypto pairs. These include USD, USDT and EUR pairs along with major crypto assets such as BTC, ETH and ADA. The list is updated regularly and reflects market demand.
These pairs may suit institutions that handle multiple tokens or need to convert large amounts between fiat and crypto.
Crypto OTC trading attracts a wide range of users:
OTC trading may appeal to users who want predictable execution for larger trades. A single quote for a significant size can support internal planning and limit price movement. OTC liquidity comes from multiple providers, which may deepen available volumes.
Privacy is also an important factor. Trades remain off the public order book. This may help users who want discretion when handling larger positions. Settlement flexibility can support corporate and institutional workflows that rely on scheduled or batched transfers.
OTC trading carries risks that users review before working with a desk. Counterparty risk is one of them. A user relies on the desk and its liquidity partners to complete each trade. Institutions often consider the platform’s operational controls and financial safeguards.
Regulatory environments vary across regions. Many users look for licensed platforms that apply strong KYC and AML procedures. Transparency also differs. An OTC quote reflects a private price rather than a visible order book, so institutions may run internal checks to confirm price quality.
Settlement options: Immediate vs. settle later
There are two settlement methods available for OTC trades: Immediate and settle later.
Immediate settlement moves the crypto or fiat once the trade is accepted. Some users want this type of finality when handling treasury movements or market activity.
The settle later option groups trades and settles them at a scheduled cutoff. This may support teams that prefer net settlement for operational or accounting reasons. Crypto.com offers both settlement types for institutional and VIP clients.
Institutional and VIP clients may qualify for the Crypto.com OTC desk based on jurisdiction and platform criteria. Some users who meet volume thresholds gain access automatically.
Crypto OTC is private off-exchange trading for larger crypto transactions. It allows trades to be agreed directly with a counterparty without placing an order on a public exchange.
Crypto RFQ is a ‘request for quote’. It provides a customised quote for a defined size and may offer a longer validity period than instant quotes.
Crypto.com OTC trades have no trading fees, although spreads may apply.
Instant quotes usually last around ten seconds. RFQs and API-driven quotes may include longer validity windows.
Crypto.com supports many OTC trading pairs across USD, USDT, EUR and leading crypto assets such as BTC and ETH.
Institutional clients, VIP users and high net worth individuals may be eligible depending on jurisdiction and platform conditions.
Important information: This is informational content sponsored by Crypto.com and should not be considered as investment advice. Trading cryptocurrencies carries risks, such as price volatility and market risks. Before deciding to trade cryptocurrencies, consider your risk appetite. Crypto.com services, features, and benefits referenced in this article may be subject to eligibility requirements, token holdings, and may change at the discretion of Crypto.com.
Cryptoasset services are provided by Foris DAX UK Limited, a company incorporated in the United Kingdom with company registration number 12843841 and registered office at Suite 5, 7th Floor, 50 Broadway, London SW1H 0DB, United Kingdom, trading under the name “Crypto.com” via the Crypto.com App, registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to provide cryptoasset services (Firm Reference Number 941745).
Any other products or services offered and advertised on the Crypto.com website or the Crypto.com App are provided by other group companies and do not fall within the services provided by Foris DAX UK Limited.
Third-party information subject to change.