Binance will now offer wealthy traders a “personalized way” to make transactions in excess of 10 BTC from exchange order books through over-the-counter trading (OTC).
Binance Trading is a block trading service.
One of the largest and most popular cryptocurrency exchanges in the world, Binans, headquartered in Malta, has introduced a new feature that allows users to trade large amounts of cryptocurrencies. According to the company's July 26 blog post, Binance Trading now offers a “personalized” way for well-managed users to trade in “big blocks”.
Block Trading Services with #Binance Trading
Binance Trading offers a wide range of sizes (generally over 10 $ BTC) quickly & securely.
Transactions are settled quickly & seamlessly into your Binance account.
Full details here⬇️https://t.co/ml0ppvmW3m pic.twitter.com/ISI8Ur0EJR
- Binance (@binance) July 26, 2019
The company said that orders larger than 10 BTC will now be sold without (OTC), and not directly in the order book of the exchange. Due to the minimum trade requirements, this means that users will need a balance on an account of at least 100 000 US dollars.
Binans argues that this will prevent the negative impact of large orders on the price of tradable tokens, which the cryptoindustry has seen more often in the past few months when the markets heat up. But at the same time, it can confuse the transaction from the public.
All transactions made using Binance Trading will be “quickly and without problems” calculated on the accounts of users of the exchange. And although the exchange did not provide any additional details regarding its fees, the blog post states that services are now available to relevant customers.
Binans Trading supports block transactions with most of the coins listed on the stock exchange, even with trading pairs that are not listed.
Block trading can reduce price fluctuations
Binans is certainly not the first large crypto-exchange that allows trading in blocks, but it is the first exchange that introduced over-the-counter trading for mass orders of all crypto pairs listed by it. However, the exchange insists that only its users who have accounts confirmed to the level of 2 or higher will be able to access the service.
Despite one of the largest volumes of trade in the crypto industry, the exchange is not immune from price fluctuations caused by huge orders for buying and selling. By offering a personalized and fast way for trusted users to make large block transactions, the company will help support growing trading volume and maximize revenue from large customers.
On the other hand, the introduction of over-the-counter block trading follows many other new features that Binance has launched in the last couple of months. Earlier in July, the exchange announced that it would offer futures contracts on the new Binance Futures platform. Just a few weeks before, Binance DEX, the company's decentralized exchange, lowered the commission structure for the Binance Chain network. The company is expected to launch a fully licensed and compliant stock exchange in the United States after it announced that Binans services will no longer be available in the country due to regulatory problems.