As the cryptocurrency market grapples with ongoing volatility and liquidity challenges, over-the-counter (OTC) trading desks are gaining traction among institutional investors. This shift underscores a growing preference for executing large transactions away from the public eye to avoid market disruption. The source reports that this trend is likely to continue as more investors seek to mitigate risks associated with market fluctuations.
Surge in OTC Crypto Market
A recent analysis by Finery Markets reveals that the OTC crypto market has surged by an impressive 138% year-over-year from Q1 to Q3 2025. In stark contrast, the top 20 centralized exchanges have only seen a modest 22% increase in trading volume during the same timeframe. This significant growth in OTC trading highlights its appeal to large traders seeking to execute substantial orders without causing price fluctuations in the broader market.
Advantages of OTC Trading
The advantages of OTC trading are clear:
- It offers a more discreet and efficient method for executing large trades
- Effectively minimizing slippage and transaction costs
As institutional interest in cryptocurrencies continues to rise, the OTC market is likely to play an increasingly vital role in facilitating large-scale transactions while maintaining market stability.
In light of the recent surge in OTC trading among institutional investors, Changpeng Zhao has called for the cryptocurrency industry to enhance security measures against address poisoning attacks. For more details, see read more.








