New Infrastructure For Crypto Equity OTC Traders
But despite the downturn crypto markets have experienced since the beginning of the year, there are numerous onramps being built with the goal of bringing more sophisticated infrastructure to OTC markets.
A sure sign of maturation is last weekâs announcement that Fidelity, the worldâs fifth-largest asset manager, is entering the world of storing and trading crypto - to be sourced from OTC markets - for institutional investors.
Indeed, building software systems for crypto that can replicate the settlement, clearing and risk management systems to which traditional investors are accustomed is becoming big business.
âEven though the market has disappointed a lot of people, the infrastructure wasnât sacrificed and you still have a lot of things being built,â explained Nuzzi. âThere are dozens of software providers that are tackling this need by OTC traders.â
For example, OTCXN is building a multi-custodian network that seeks to address the lack of a clearing and settlement mechanism that can connect liquidity providers and exchanges with minimal counterparty and settlement risk.
âWhat we have created is an institutional-grade Layer 2 network, like Lightning Network, except that it operates across all crypto assets and at institutional scale and capacity,â said Rosario Ingargiola, CEO of OTCXN.
âYou simply cannot scale the crypto markets to institutional levels without removing public ledger transactions from the real-time trading critical path,â he continued, explaining that his platform will facilitate OTC trades between counterparties to be settled and cleared in less than a second.
https://www.forbes.com/sites/astanley/2018/10/23/uncharted-bitcoin-otc-markets-gear-up-for-institutional-inflows/#2b39548f7bac