5 Best Crypto Market Makers That Support OTC Trading

In the realm of cryptocurrencies, over-the-counter (OTC) trading refers to the type of trading that takes place outside crypto exchanges. The OTC market is responsible for maintaining the well-being of the entire crypto market and caters to institutional investors, VCs and other big market players with the need to regularly make large transactions usually amounting to $100,000 and higher. 

Imagine selling a cryptocurrency, even a small amount, for one or multiple million dollars on a crypto exchange. As exchanges don’t have sufficient liquidity, this can cause a dramatic drop in the asset’s value, leading to a truly disastrous scenario. OTC platforms help avoid market manipulation by creating a kind of a closed marketplace where buyers and sellers can trade on individual terms with maximum confidentiality. Simply put, in OTC trading, it’s possible to set your own price for buying or selling assets. Meanwhile, the OTC market desk acts as a guarantor for the transaction, thus creating a safe and secure environment for both parties.

Over the past years, crypto market making firms have been looking to increase their client base by reaching out to institutions and offering them their OTC solutions. Professional investors, venture capitalists and businesses can all benefit from turning to the market makers that enable OTC trading as they not only provide dependable and efficient liquidity, but also deliver some unique perks that can’t be found on other OTC platforms.

In this article, we brought together the premier crypto market making firms that had successfully introduced over-the-counter trading to win the hearts of institutional clients.

Market Makers With OTC Crypto Platforms: Top 6 Picks For 2023

In the table below you can find some general information about the OTC services of the reviewed crypto market makers, and the following listicle features a detailed description of each separate offering.    

 

 

Gotbit Hedge Fund

 

 

Gotbit’s OTC desk concentrates on venture funds and the web3 project’s teams. The number of VCs who have already enjoyed the product exceeds 200 and seems to grow exponentially as the OTC platform develops. Gotbit Hedge Fund partners who use its market management service can place their deals and terms using the desk, while the market maker itself acts as the guarantor of fulfillment of obligations due to its spotless reputation and industry-wide recognition. Thus, both investors and funds can find new Web3’s rising stars and project founders get an excellent opportunity to raise desired capital even during bear markets. To date, Gotbit’s OTC platform order sizing varies between $50,000 and $2,000,000 per trade.

• Website: gotbit.io

• Years in business: 6

• Key differentiator: Gotbit stands out as a hedge fund that utilizes a “two and twenty” fee structure under its market making offering, allowing clients to take profits ranging from 80% to 98%

• Market maker’s useful features: AUM exceeding $1.3В, 160 trading desk members, integration with all major CEXs, MEV strategies underlying market making for DEXs, one-stop comprehensive dashboard with all necessary statistics for managing the client’s markets

Wintermute

Wintermute built its institutional-grade OTC trading desk called NODE as an all-round solution offering trading, price discovery, performance monitoring, and hassle-free settlement. The main competitive advantage of the platform is zero-fee execution. NODE is accessed via both API and browser and has a pretty intuitive trading interface that clients can customize with advanced charting tools. Its outstanding deep liquidity order books enable institutions to secure large deals within minutes, while Wintermute’s proprietary algorithms clinch competitive prices and mitigate slippage. Aside from NODE, big market participants can try OTC trading through partner integrations and voice trading.  

 

• Website: wintermute.com

• Years in business: 6

• Key differentiator: Wintermute focuses on early equity rounds, helping the most promising crypto startups to enter the market and get listed on top-tier exchanges

• Market maker’s useful features: algorithmic trading, profound DeFi expertise, trading insights and statistics, attractive revenue model that doesn’t imply monthly fees

GSR Markets

 

 

The OTC offering from GSR is wrapped around providing deep liquidity and personalized customer service. The firm utilizes its Smart Order Execution technology that discovers unmatched crypto liquidity and pricing across a wide spectrum of market players, custodians, and exchanges. GSR’s OTC platform serves counterparties in over 50 countries, allowing them to trade BTC and ETH among 200+ supported digital assets. Post-trade settlement is also available in USD, EUR, JPY or any other popular fiat currency. During their experience with GSR’s off-exchange trading, institutional investors connect with a personal account manager assigned to them, while also receiving expert trading analysis and insight. 

• Website: www.gsr.io

• Years in business: 10

• Key differentiator: GSR’s technology relies on pre-set bid-ask spreads and order book KPIs to guarantee that the agreed market characteristics will definitely be executed

• Market maker’s useful features: increased transparency (performance tracking at a granular level, daily market reports, etc.), professional mining services for additional profit-making

Amber Group

 

 

Amber Group’s single-dealer platform for off-exchange trading allows institutions to enhance execution of their large trades in any market situation. The firm offers top-quality OTC service covering popular tokens and altcoins, along with options for post-trade settlement and margin financing facilities. Amber boasts top-notch pricing that is achieved by effectively managing and internalizing trading risks in real-time, all while keeping any negative effects on the market to a minimum for clients. Its automatic e-quoting engine obtains liquidity from a variety of liquidity venues, including the world’s leading crypto exchanges. The support team is available around the clock to assist you throughout your interaction with the platform.

• Website: ambergroup.io

• Years in business: 6

• Key differentiator: Asia-focused firm delivering tailor-made liquidity solutions for token issuers and acting as both principal and designated market maker for exchanges

• Market maker’s useful features: enhanced security, risk management and hedging strategies, live analysis of market data

Yellow Capital

Yellow Capital OTC's offering was built around effective cash-flow provision, liquidity extraction, and vast crypto experience. Investors who work with Yellow Capital's platform gain access to over 200 markets, 24/7 delegated support, customized solutions, and settlements in the most popular currencies.

• Website: www.yellowcapital.com
• Years in business: 6
• Key differentiator: Yellow Capital was founded by ex-GSR co-founder with the goal to help crypto projects grow into real businesses.
• Market maker's useful features: pioneering technology, individual support managers, high variety of solutions

Jump Trading

 

 

Chicago-based market maker Jump Trading entered the OTC brokerage market in 2018 by developing its own standalone desktop product for facilitating large Bitcoin transactions. Investors and traders can connect to the electronic OTC Desk using a specially designed dashboard, which adds security to the process and eliminates the need for third-party chat services. The platform doesn’t integrate with any crypto exchanges – the examination of OTC crypto trading data is ensured by Jump Trading’s cutting-edge computational capabilities. As for the firm’s service fees, they are included in the agreed price.

• Website: jumptrading.com

• Years in business: 24

• Key differentiator: One of the oldest market makers that specializes in high-frequency trading, liquidity provision for both spot and derivative markets, and advanced strategies

• Market maker’s useful features: tailor-made API integrations, smart order routing

It’s worth noting that Jump Trading’s crypto-focused arm called Jump Crypto is ceasing cryptocurrency trading in the USA.

FAQ – Crypto Market Makers In the OTC Brokerage Space 

Here’s everything you need to know about crypto market making firms with the most appealing OTC solutions.

What is OTC trading?

Over-the-counter or OTC is an off-exchange trading occurring straight between buyers and sellers on closed platforms which provide sufficient liquidity for making large trades. OTC desk traders set their own prices for purchasing/selling assets, while the OTC service provider takes on the role of the guarantor of transactions.   

Why choose market making firms for OTC trading?

High-net individuals and businesses can benefit from accessing crypto market maker’s deep liquidity and experiencing other advantageous conditions such as efficient execution, minimized slippage, and fair pricing.

What crypto market maker caters to the most diversified audience?

Gotbit’s OTC desk serves many types of institutional clients, including tier-1 and tier-2 venture capitalists, business angels, and Web3 founders of large projects.

What is the minimum order size set by crypto market makers to enter OTC brokerage?

OTC deals usually start from $100,000. However, some crypto market makers like Gotbit allow you to participate with $50,000, while Wintermute, Amber Group and Jump Trading don’t imply minimum transaction size. Out of reviewed exchanges, OTC trading from GSR has the highest entry threshold of $250,000.