Blockchain.com acquired Altonomy’s OTC desk in a bid to expand the crypto’s OTC network in the altcoin space so let’s read furhter in today’s latest crypto news.
The deal was confirmed earlier this year which will dramatically expand the exchange’s OTC network. Blockchain.com acquired Altonomy’s OTC trading desk saying that it integrated its core systems with the company’s existing tradign capabilities according to the VP of Markets Dan Bookstaber. He declined to disclose the terms of the deal but said that the Altonomy’s OTC desk was transferred and since the notice from March 10 from Global Legal Chronicle described cash and stock sale that is advised by the law firm Allen and Overy.
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Altonomy is a digital asset investment and OTC firm founded in 2018. Specializing in altcoins like ApeCoin for example, its OTC desk pairs buyers and sellers of hard-to-move assets while it works with over 1000 clients. The deal expands Blockchain.com’s presence in the crypto OTC trading space as the platform handled over $16 billion in spot market OTC trades last year while Blockchain.com saw a $10 billion in total activity across its institutional crypto business lines.
Altonomy’s client network and its Asia footprint are what sealed the deal. Blockchain.com had one of the bigger desks for OTC options which are more complex than spot trades while the business bolsters the altcoin trading capacity. Bookstaber said:
“Their technology is very good at finding liquidity and managing execution on coins that are much lower liquidity. They have quite a bit of network within the ecosystem of people who are building these clients, far before they ever get listed.”
The deal came as big banks were waking up to complex crypto trades and Goldman Sachs even announced that it facilitated and executed its first OTC crypto option trade in conjunction with Galaxy Digital which was a non-deliverable BTC option. The trading altcoins via OTC is quite different since APE and other novel altcoins don’t have an established liquid market as BTC does:
“The dynamics of a primary listing are just very different from a coin that’s traded for a while on a lot of exchanges.”
Ricky Li, the co-founder of Altonomy heading the North America division, said the OTC trading paid well for us but it was time to make an exit and the clients wanted borrowing and lending services that the platform had little interest in the building:
“[Now] we just get to manage our own money and trade on the market.”
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