Why OTC desks are becoming essential for large crypto trades

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

As market volatility and liquidity fragmentation persist, OTC desks are increasingly used by large traders to execute crypto transactions without disrupting public markets.

When a large order is processed on a public exchange, it can use up available liquidity at different price levels, often leading to slippage; an average execution price that greatly deviates from the initial market price, and transaction costs significantly increase in the process. An OTC crypto desk matches large sellers and buyers off-exchange to reduce information leakage and slippage, meeting the needs of users seeking reliable pricing, discretion, and rapid settlement.

Essentially, people use OTC trading to move size without moving the market. The best OTC desks for large crypto trades aggregate deep, reliable liquidity, settle securely, offer quote certainty, and provide high-quality customer service.

The advantages of OTC desks over traditional centralized exchanges and even decentralized ones are reflected in hard data. According to a Q1-Q3 2025 analysis of over 7.1 million crypto trades executed on Finery Markets’ platform, the crypto OTC market grew significantly faster than the centralized exchange market. OTC markets registered 138% y/y growth, while the top 20 centralized crypto exchanges reported only a 22% increase over the same period.

CoinGecko reports that the top CEXs recorded spot trading volume of $3.9 trillion in Q2 2025, down from $5.4 trillion in the previous quarter, or a decrease of 27.7%. Decentralized exchanges fared a little better with trading volume of $876.3 billion, up from $699.2 billion in Q1 2025, or +25.3%. However, this growth still pales compared to OTC desks.

Crypto exchanges had a wild ride in 2025, with trading volumes marked by extreme volatility, underscoring the crypto market’s unpredictability. Partnerships with multiple liquidity providers can mitigate volatility, as can direct liquidity access without platform queues, both practices that On-Demand Trading (ODT) has successfully implemented.

OTC trading is suitable for transactions frequently exceeding a million. Its competitive fees and secure trade execution appeal to high-net-worth individuals, hedge funds, institutional investors, and other high-volume traders who value support for a wide range of assets. By allowing two parties to negotiate terms and prices privately, OTC desks offer market stability and prevent speculation.

High-volume trades on public exchanges can trigger flash crashes, which OTC desks help mitigate by collaborating with multiple liquidity providers. Confidentiality is a significant advantage. OTC trades remain off the books, unlike exchange transactions, and protect traders from unwanted attention or front-running. Finally, OTC trading can offer lower transaction costs and better pricing than exchanges, as direct negotiations cut out intermediary fees.

Platforms like Coinbase Prime, with its institutional-grade infrastructure, and Kraken OTC, known for reliable liquidity and services, need no introduction. ODT, a lesser-known OTC trading desk, is equally apt at executing large trades thanks to effective mechanisms of sourcing liquidity and quoting large blocks while minimizing slippage.

ODT achieves same-day settlement, has closed trades exceeding $10 million in a single day, and has surpassed $240 million in trading volume in just one month. It also welcomes users trading as little as $500. Its security protocols are top level; it has prevented over $10 million in payments to scammers.

ODT’s transparent fees on crypto purchases generate revenue for the platform without hidden charges or spreads. Clients pay per transaction, and larger trades can be incentivized with rate discounts. Fees become negotiable at high volumes due to lower execution costs and competitive liquidity sourcing, and clients can get better pricing by leveraging their size, timing, or settlement preferences.

Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.