Non-Custodial OTC Trading Desk Launched By Crypto Exchange Hodl Hodl

Nov 4, 2018 at 18:30 Update Date :Nov 15, 2018 at 13:05 UTC

The world’s first ever non-custodial OTC (over-the-counter) trading desk for BTC has been launched by a Peer-to-Peer crypto exchange Hodl Hodl.

Hodl Hodl launched it in partnership with Tenbagger, a licensed European broker. Tenbagger is an EU regulatory platform which is licensed as virtual currency exchange service in Estonia. In the future, Tenbagger will be a ‘match and guide’ counterparties that enable users to buy and sell BTCs at many competitive prices.

What more interesting thing about Hodl Hodl is, it has become the world’s first ever OTC platform which provides non-custodial escrow services for the trade of crypto like BTC.

The firm stated that an OTC bitcoin trading market functioning correspondent to pre-exist crypto exchanges, and the fact is none of the exchanges is providing non-custodial escrow services for cryptocurrency which helps in eliminating the risk of fund losing.

So now with the help of BTC blockchain, OTC escrow service will run on the most secure crypto network in the world. That means, the new service will not only erase the custodianship and counterparty risk but it also leverages the network of BTC that is running 24*7 with around 99.98% uptime. The firm announced the new trading desk in their tweet.

Impact of OTC

There are many benefits of removing the custodians and other middlemen. One, since this is applied on the BTC blockchain in Peer-to-Peer fashion, therefore the transactions are more secure,

Secondly, over-the-counter trades don’t affect bitcoin spot price. The trades are settled on the same day, and therefore the platform provides 24*7 supports and also gives surety for the private trading experience.

The firm said, “For each trade, we create a unique multisig escrow account on Bitcoin’s blockchain, ensuring transparency and the highest level of security”

However, Hodl Hodl also made it clear that the new service, in future, won’t affect their BTC and Litecoin exchanges. Hodl Hodl, perhaps the only non-KYC non-custodial Peer-to-Peer platform where one can trade any amount of coin.

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