KEY TAKEAWAYS
- Kraken has lowered the minimum trade size for its OTC trading services to $50,000, enhancing flexibility and liquidity access for clients.
- The update includes a chat option for personalized service and a self-service RFQ system for quick, obligation-free quotes.
- Kraken has improved trade visibility and reporting, unifying trade histories and adding new fund tracking views.
Kraken has announced a significant update to its over-the-counter (OTC) trading services, lowering the minimum trade size to $50,000. This change is designed to provide clients with greater flexibility in accessing deep liquidity without compromising execution quality. The update allows traders to optimize capital deployment and execute trades with more precision.
OTC trading at Kraken is available through two main channels: chat and a self-service request-for-quote (RFQ) system. The chat option offers a premium, personalized service, enabling clients to securely connect with the trade desk to confirm assets, lot sizes, and pricing. This service aims to provide a white-glove experience from start to finish.
The RFQ system, on the other hand, allows clients to receive executable quotes within seconds, with no obligation to trade. This feature offers unlimited quotes and the option for instant settlement or flexible settlement, where trades can be executed immediately and settled later. The RFQ service is available on Kraken Pro, the Kraken Pro app, and Kraken Custody.
Enhanced Trade Visibility and Reporting
Kraken has also improved trade visibility and reporting for OTC transactions. New updates include clearer trade valuations with a USD value column in OTC trade exports, facilitating easier tracking of crypto-to-crypto trades. Additionally, trade histories for OTC and Pro trades are now unified, enhancing visibility and allowing exports from either the Documents area in Pro Settings or the Trade History in the OTC Portal.
Further enhancements include new views for fund tracking, showing the origin and destination of funds. These views will display transactions as internal transfers, on-chain, or wire transfers, providing clients with comprehensive insights into their trading activities.
With these updates, Kraken aims to offer its OTC clients access to deep liquidity for tighter spreads on trades over $50,000, all while maintaining maximum flexibility and transparency. More details on these updates can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Kraken’s decision to lower the minimum trade size for its OTC services to $50,000 marks a strategic shift aimed at enhancing flexibility and accessibility for its clients. This move is expected to optimize capital deployment and improve trade execution precision.
A recent report from PYMNTS highlights the evolving landscape of OTC cryptocurrency trading, with platforms like BitGo launching comprehensive OTC desks offering deep liquidity and integrated services. This aligns with Kraken’s strategy to provide enhanced liquidity and execution quality to its clients.
Recent industry research suggests that reducing OTC trade sizes could lead to increased market fragmentation but also allows for more discreet transactions with less market impact. This supports Kraken’s aim to offer a flexible trading environment without significantly influencing market prices.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
