The over-the-counter (OTC) trading desk at cryptocurrency finance firm Circle had a notional volume of $24 billion in 2022, according to an official Medium blog post on Jan. three.

Per the argument, Circle executed 10,000 OTC trades with 600 different counterparties, at $24 billion in book. Every bit such, the company claims to have become a "core liquidity provider to the entire crypto ecosystem."

According to Circumvolve, the business firm at present partners with over 1,000 institutional clients such as exchanges, token projects, OTC desks, asset managers, and other global endowments. Circumvolve stated:

"This year, nosotros anticipate further incremental growth in institutional adoption catalyzed by stablecoin usage, advancements in institutional custody solutions, increasing regulatory clarity specially in the [United States], and improvements and innovation in core crypto infrastructure."

OTC trading allows investors to carry out trades directly with one another without relying on the services of an intermediary such as a cryptocurrency exchange. OTC trading services in digital avails are a particular describe for institutional investors, who are increasingly using the OTC desks of firms similar Circumvolve and Coinbase.

Every bit Cointelegraph reported in December 2022, institutional investors equally a whole have shifted to college liquidity OTC Bitcoin (BTC) markets. Investment is growing in OTC funds similar that offered by Coinbase, which launched OTC trading for institutional customers in November 2022.

Coinbase outperformed Grayscale'south Bitcoin Investment Trust (GBTC) on OTC markets in terms of BTC merchandise volume. While OTC trade volumes are dwarfed by non-OTC investment, it is all the same significant as OTC markets are just open for 31 per centum of annual tradable hours.

MV Index Solutions, a subsidiary of VanEck that develops, monitors and licenses MVIS indices, has also jumped on the OTC bandwagon. In November 2022, MV Alphabetize Solutions launched its Bitcoin index based on three major OTC desks in November.