Binance’s Changpeng Zhao is venturing into more Blockchain and Cryptocurrency establishments. The latest being an Over the Counter (OTC) trading desk. The OTC is an American based company headquartered in San Francisco, California.
Binance has invested $3 million into Koi Trading portraying its support of Cryptocurrency adoption around the world. Koi Trading not only works with OTC trades but also offers consulting work related to data science and quantitative research on Cryptocurrency.
The mission and vision of Binance and Koi Trading seem to match according to the head of Binance Labs, Ella Zhang. Infrastructure to allow freedom of value exchange globally, or in other words, people have much more options of adopting Cryptocurrency is what Binance and Koi Trading seem to work towards gaining.
Koi Trading has already expanded into North America, Asia and the EU with the likes of an experienced team.
Binance may have understood that countries, where Cryptocurrencies are banned, Over the Counter trading for Cryptocurrencies, are much more preferable. Thus countries like China where OTC trading is becoming popular is ideal for expanding into new territories. China has already recorded individual trades in OTC of more than $100 million. With Binance investing into Koi Trading, it helps place trust into an OTC company which OTC companies fail to provide due to their nature of the business.
One reason for the investment is Koi Trading’s robust AML procedure, and it’s banking relationships which Binance believes.
It is also witnessed that OTC is cheaper than exchanges in terms of fees. OTC’s also give more freedom compared to the restrictions. Exchanges such as Bitfinex is known to charge more than Paypal, a popular cross-border payment service even though it makes use of Cryptocurrencies. Thus people who make frequent transfers would prefer OTC’s as compared to Exchanges.
Overall it’s a win-win for both a popular Cryptocurrency exchange like Binance and a Cryptocurrency OTC which is trying to find it’s place like Koi Trading.
Image Source – Flickr
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