How Do OTC Desks in Crypto Differ from Traditional Dark Pools?
Crypto OTC desks often operate as principal desks, meaning they act as the counterparty to the trade, taking the other side from their own inventory. Traditional dark pools, conversely, are typically alternative trading systems (ATS) that match buyers and sellers as an agent, without taking a principal position.
Crypto OTC trades are generally settled bilaterally off-exchange, offering greater privacy and often better pricing for large blocks.
Glossar
Alternative Trading Systems
Venue ⎊ Alternative Trading Systems, in the context of digital assets, represent non-traditional venues that facilitate the matching of buy and sell orders outside of conventional regulated exchanges.
Crypto OTC Desks
Structure ⎊ Crypto OTC desks represent privately negotiated bilateral agreements for cryptocurrency transactions, operating outside of public exchanges and providing liquidity for large block trades.
OTC Desks
Execution ⎊ These specialized desks within financial institutions or large crypto firms facilitate the execution of large-volume, non-standardized derivatives trades directly with clients.