Cryptocurrency exchange Huobi, which is one of the top 10 leading crypto exchanges by trading volume, has launched an investment platform for institunional investors.
The platform, called Huobi OTC Desk, gives investors access to various cryptocurrencies, including Bitcoin and Ethereum. Cryptocurrency investors can trade digital assets in pairs with fiat currencies such as the U.S. Dollar, Euro and British pound.
Very proud to announce the launch of Huobi #OTC Desk, a customized – and fully regulated – service for high volume traders. Built on our Gibraltar-issued DLT license, users can trade $USD, $GBP, and $EUR for $BTC, $ETH, + more!
More: https://t.co/hf9SFD5yO9#BTC #Bitcoin #ETH pic.twitter.com/BXIIbUP22O
— HuobiGlobal (@HuobiGlobal) May 15, 2019
The platform will operate separately from the rest of the Huobi digital ecosystem. Huobi OTC Desk differs from the main exchange in that the project received a license from the Financial Services Commission of Gibraltar. It allows traders to make financial transactions on blockchain, and trades will be legally backed up and protected by the state.
Lead manager of Huobi Global, Jeff Adams, noted that the lack of government regulations is often the main reason why institutional investors are resistant to make any blockchain-based financial trades. At the same time, the interest in investing in crypto assets is very high, and it’s growing every day.
“We see a lot of appetite out there from players in more established financial markets when it comes to digital assets but many are still uncomfortable jumping into unregulated trading environments,” said Mr Adams.
“We also see an unfilled need for services aimed at those looking to make large volume transactions. Huobi OTC Desk is a big step forward to filling both of those needs,” continued the senior sales manager for Huobi Global, Jeff Adams.
The Huobi OTC Desk is dedicated only for large volume transactions, so crypto investors that are usually participating in small volume transactions, won’t be able to explore the new features of Huobi’s OTC Desk. Although the exchange did not specify the minimum threshold to enter institutional level trades.
It’s worth to mention that the access to the Huobi OTC Desk is closed for US based investors. Most likely, this is due to the fact that the requirements of the license issuer, Gibraltar, and the US regulations are much tougher than in other countries.
Huobi is one of the most recognizable cryptocurrency brands in the crypto industry, especially in the East Asia region. The new Huobi’s platform can really attract large and institutional investors, due to the new regulations and guaranteed protection from the Gibraltar’s state. It will be interesting to see what volume will be released at the OTC Desk in a few weeks time. While Bitcoin unexpectedly soared above $8,000, the interest in digital assets has also increased significantly, therefore institunional investors could potentially re-think their options and open new trading positions.