What Role Do Prime Brokers Play in Facilitating Large OTC Crypto Trades?

Prime brokers act as a central counterparty for institutional clients, offering a suite of services beyond simple execution. These services include centralized clearing and settlement, margin lending, custodial services, and sometimes even risk management.

For large OTC crypto trades, they provide the trust and infrastructure necessary to execute significant transactions efficiently and securely, consolidating various counterparty risks into a single relationship.