Decentralized exchange AirSwap is launching the framework for over-the-counter (OTC) trading product for mainnet rollout. In an update posted on its website, AirSwap said the new product would be available "exclusively to a private beta group."
Founded in 2017, AirSwap became known for offering frictionless peer-to-peer trades for ERC20 tokens to a group of primarily retail investors. The new OTC block trading product will allow high net worth investors to trade any quantity of digital assets on the exchange.
Co-founder Don Mosites, while commenting on the development, said the new OTC tools would make trades more open and direct.
“It essentially allows your more flexibility on price and the ability to know your counterparty, assess with whom you'd like to do business more directly," he said. “With the OTC tools, this unlocks a totally new world of liquidity. This is going to enable trades of any size to happen with the AirSwap network.”
For investors that currently use AirSwap, the new update is a step in the right direction. The AirSwap platform has always made it easy for users to purchase and sell off tokens but the addition of a chat feature in the new rollout will connect traders with buyers in a private conversation where they can have this type of interaction without broadcasting the terms of negotiation that could affect the market.
“We saw that around 40 percent of crypto volume worldwide was being traded OTC,” Mosites remarked, while explaining why the conversational trading was a priority for the company. AirSwap believes an opportunity exists in improving efficiency and the overall trading experience to make trades happen faster. The company plans to circumvent all the friction that goes into negotiating OTC trades with conversational trading built on Ethereum.
Due to the increase of institutional solutions to crypto investors, accredited investors and investment firms are more inclined to join the industry to grow their business.
The upgraded platform will also feature an identification system, to be managed by Wyre -- a regulated money service business -- which allows dealers and other institutional investors have access to regulations that secure their trading activities.
In addition to the OTC trading platform, AirSwap also launched requests for quotes (RFQs) for takers to reach an entire network of makers who have opted to receive RFQs for those assets.
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