‘Huge Demand in India’ Spurs Zebpay to Launch OTC Bitcoin Trading Desk
Indian cryptocurrency exchange Zebpay is launching an OTC bitcoin trading desk. The exchange has shared the details with news.Bitcoin.com, stating that “There is huge demand” among bitcoin traders and arbitrageurs in India for OTC desk services.
Zebpay Sees Huge Demand for OTC Crypto Trading in India
Zebpay’s OTC desk offers “deeper liquidity and private, more personalized service to institutions and individuals with large orders that might be hard to fill on an open exchange,” the exchange’s OTC page details. Customers can trade BTC against INR with a minimum order size of 5 BTC. Registration for the new service began on Saturday but the official launch date is set for Aug. 3.
Nirmal Ranga, Vice President of Trade at Zebpay, has shared some details with news.Bitcoin.com about his platform’s upcoming service. “OTC constituted 90% of our total business until 2018, when the Reserve Bank of India notice came into the picture,” he described, adding:
There is huge demand among traders and arbitrageurs in India for OTC desk services, and the recent supreme court decision reversing the ban has caught the attention of large investors and institutions eager to explore this new asset class.
In March, the Indian supreme court quashed the circular issued by the central bank, the Reserve Bank of India (RBI), which banned banks from providing services to crypto businesses, including exchanges. Zebpay exited India shortly after the ban but returned earlier this year with new management.
The new OTC service is aimed at “traders, arbitrageurs, HNIs, long-term investors, asset managers, and institutions that want to buy/sell bitcoin in bulk,” Ranga further shared. “It will give them the opportunity to trade large quantities without being affected by the skewing of prices these quantities might entail on open order books on any platform.”
“Our OTC liquidity will come largely through active participants on the platform,” Ranga clarified. “We have existing long-term relationships with a few liquidity providers, through which we provide maximum liquidity with minimal or negative slippage.” The executive elaborated:
We plan on launching with the BTC/INR pair and making that our singular focus in the near future. However we will assess the market demand for other asset classes and accordingly consider launching USDT/INR and ETH/INR.
What do you think about Zebpay launching an OTC desk? Let us know in the comments section below.
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