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ICO news: Huobi introduces OTC trading desk for institutional investors

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Huobi, one among the top five cryptocurrency exchanges in the world, has announced through a blog post that it has launched a regulated over-the-desk trading desk but only for institutional investors and high net worth individuals. Dubbed Huobi OTC desk, it is a fully regulated OTC desk built on Huobi’s Gibraltar FSC-issued Distributed Ledger Technology (DLT) license.

Huobi is a cryptocurrency exchange that offers crypto trading and storage options but has numerous international subsidiaries like Huobi labs, a blockchain startup incubator cell. Huobi has raised a cool $2 million to date, 50% of which was raised through an Initial Coin Offering- according to InWara’s market intelligence platform.

Jeff Adams, Senior Sales Manager for Huobi Global was quoted saying “We see a lot of appetites out there from players in more established financial markets when it comes to digital assets but many are still uncomfortable jumping into unregulated trading environments” he also added “We also see an unfilled need for services aimed at those looking to make large volume transactions. Huobi OTC Desk is a big step forward to filling both of those needs.”

Indicating there is growing appetite amongst institutional investors for digital assets such as cryptocurrencies. This isn’t an isolated event with just Huobi clients, according to a study conducted by investment firm Fidelity amongst its clients- a whopping 47% of investors think “Digital assets are worth investing in” although the risk involved in doing so is often a turnoff.

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Interestingly, Huobi had set its eyes on expanding to other Asian countries and as part of its plan acquired a majority stake in Japanese crypto exchange BiTrade. BiTrade is among the 16 regulated cryptocurrency exchanges in the country. 

Huobi also acquired Hong-Kong based Pantronics Holdings for a whopping $70 million in 2018. Pantronics is an electronics manufacturing firm and is a publicly listed company thus Huobi’s acquisition constitutes a reverse Initial Public Offering.

Fidelity OTC trading desk for Investors

Unsurprisingly, Fidelity Investments also stepped into the crypto space by enabling OTC trading for cryptocurrencies like Bitcoin. What’s noteworthy here is, Fidelity Investments is unlike Huobi which is a crypto trading enterprise. Fidelity Investments is among the largest asset managers in the world, with assets valued at a whopping $2.46 trillion.

Hence the fact that an enterprise as established and powerful as Fidelity steps into the space. Fidelity’s announcement was so profoundly impactful that it is even said to have influenced Bitcoin’s recent price surge.


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