A New Partnership Lets Institutional Investors Play OTC Crypto Markets

UK-based crypto lending and liquidity provider B2C2 is teaming up with SFOX, a leading U.S. crypto company serving institutional investors, according to a Feb. 12 press release. 

This partnership is aimed at letting SFOX clients (including asset managers, family offices and high net worth individuals) access B2C2’s large liquidity pools and better-priced over-the-counter (OTC) markets though a single point of entry. 

Danny Kim, head of growth at SFOX, said: 

“We are delighted to partner with B2C2, the largest OTC liquidity provider whose streaming pricing and electronic trading capabilities are relied on by institutional market participants globally. SFOX clients will now benefit from a new source of OTC liquidity coupled with greater price discovery.”

Max Boonen, founder and CEO of B2C2, said: 

“Our partnership enables a broader set of market participants to access B2C2’s real-time OTC pricing and deep two-way markets. Much like the FX markets which are almost entirely OTC, the digital asset class is increasingly trading off-exchange, resulting in tighter spreads and deeper liquidity.”

B2C2 is the first OTC trading venue to be added to the SFOX platform. Leadership at both platforms believe that cryptocurrency OTC markets have gained market share from traditional exchanges over the past three years. A report by Aite Group1 predicted that OTC activity would soon account for the majority of cryptocurrency trading volume.

Cointelegraph reported that recent data from Tabb Group shows that the share of United States equities traded off-exchange increased from 34.7% in December 2018 to 38.6% in April 2019. This trend is also being mirrored in Europe, where off-exchange trading accounted for 9.6% of all on-exchange activity for the same period.