Malta-based Binance, the world’s largest cryptocurrency exchange by trading volume, has introduced a new over-the-counter (OTC) service, “block trading.”
Binance’s management explains that the OTC trading option lets traders acquire larger amounts of digital assets, typically valued at over 10 Bitcoin, without using an order book. According to Binance’s blog post, block trading helps traders avoid potential losses due to price slippage resulting from large orders being entered on the exchange.
The Binance team notes that the benefits of using the newly launched OTC service include being able to access more than 150 different cryptoassets, reduced counterparty risk and the option to “discuss trades directly over chat.”
According to Binance’s management, settlement occurs directly in users’ exchange accounts without requiring third-parties to finalize transactions. Traders will be able to confirm orders within 1-2 minutes after receiving price quotations over chat.
Notably, the trading platform’s OTC service also lets account holders trade cryptocurrency pairs that may not be listed. For example, users can directly trade different altcoins while taking advantage of Binance’s fast pricing process.
To use the block trading service, users must pass the level-2 verification process (or higher) and have access to messaging platforms like WhatsApps or Telegram.
Launched on January 23, 2019, Binance’s OTC trading takes place directly between two parties, without the oversight of an exchange. In addition to offering flexible trading options for OTC traders, Binance introduced margin trading earlier this month.