Binance Expands Footprint With $3 Million Investment In Koi Trading

21. Nov 2018 Posted by Guest on News

Binance has confirmed a $3 million investment in over the counter (OTC) crypto trading desk Koi Trading. The investment attests to how focused the cryptocurrency exchange remains, as it continues to diversify and strengthen its operations.

Binance Koi Investment

Headquartered in San Francisco CA, Koi Trading seeks to become a leading provider of liquidity for private cryptocurrencies. The firm currently offers assistance on data science as well as quantitative research on matters digital currencies. According to Binance Labs head Ella Zhang, the investment will go a long way in strengthening Koi operations.

Koi boasts of an experienced team of founders that it is banking on, to make a name for itself in the sector.  A partnership with Binance should go a long way in helping the team tap into a vast network of counterparties, distributed across North America, Asia, and Europe.

A partnership with Binance should also help Koi address a number of underlying issues crippling over the counter trading in China. While China has instituted bans on cryptocurrency exchanges, the same has not stopped people from engaging in trading activities.

Crypto OTC Trading

A good chunk of China’s Crypto OTC trading takes place in on chat app WeChat.  Even though it is the only available option, it is not that reliable and effective for digital trading currencies. Koi is planning to change all this, through its new AML program.  Koi is also hoping to use its extensive banking relations in the U.S as well as trust among counterparties to reinvigorate crypto OTC trading.

OTC crypto trading is on the rise around the world compared to the global exchange market. As early as this year Circle, double its minimum order size to $500,000 from $250,000. Over the counter, crypto trading is essential, as it is key to increased institutional adoption going forward.

Koi joins a growing list of OTC platforms looking to cater to the needs of institutional investors eyeing opportunities in the burgeoning’s sector. OTC platforms allow traders to execute large orders in real time that in most case would not be possible in conventional exchanges. Large orders in mainstream exchanges trigger ripple in the markets something that such platforms work to curtail.