The over-the-counter (OTC) market is where investors trade financial assets outside the exchange. Twenty-five percent of digital assets, including cryptocurrencies, are traded in the OTC market. The OTC share would increase in the future.
Eye-catching is the recent report that Circle, in which Goldman Sachs invested, has signed $24 billion in digital assets through the OTC market last year. This is estimated at 25 percent of the all-digital asset trading last year.
OTC trading would increase. Currently, all bond trading worldwide took place in the OTC market.
Ordinary investors assume that only institutional investors, including financial companies, brokerage houses, and fund management companies, could trade in the OTC market. This assumption is partly correct. Even individual investors can buy and sell in the OTC market, however.
Let’s define the OTC market in the 5W1H rule.
WHAT: The OTC is traded outside the formal exchange.
WHO: The OTC deals in mostly large-sum of investment.
WHY: Prices are negotiable between sellers and buyers in the OTC market.
HOW: The OTC is a well-established market.
WHEN: You can start the OTC trading now.
