Ready to OTC what’s new?
We introduced the world’s first crypto rewards programme and the first payment card that lets you spend your digital coins in real life. Now, we’re delighted to announce another industry first – no-strings access to OTC (over-the-counter) rates for crypto exchanges on the Wirex platform.
The OTC rate is usually only accessible to institutional traders due to prohibitively large transaction minimums. We want to put the power back in the hands of the people, which is why Wirex 3.0 allows all users to exchange their crypto at OTC rates, no matter the amount. This means that you can now buy and convert your Bitcoin, XRP, Ether, Litecoin, Dai, Waves and Nano at the most competitive rates on the market.
So, what is OTC?
Over-the-counter trading describes any trades that take place outside of centralised, formal exchanges like the New York Stock Exchange or NASDAQ. OTC trades allow the parties involved to set the terms of the trade, including bid and ask prices. OTC transactions enable institutions to sidestep many of the issues associated with exchanges, including slippage, liquidity and a high risk of hacking and fraud. The trades themselves do not require facilitation by third parties (who invariably take their own cut) - this results in faster transactions and, most importantly, a better overall price.
OTC trading is usually limited to high-net worth individuals and financial institutions. We believe that everyone should be able to exchange their currencies – crypto and traditional - at the best possible prices. That’s why we’re the only platform that gives you the ability to exchange your crypto at OTC rates and traditional currency at the interbank rate. By working closely with a number of OTC trading desks, we make sure that you always get a good deal.
A (very) brief history of OTC
The electronic Over-the-Counter market was created in 1971 by the National Association of Securities Dealers (NASD). In the same year, they created a supporting system called NASDAQ, an “automated quotation system that reports on the trading of domestic securities not listed on the regular stock markets”. NASDAQ was used to publish OTC inter-dealer prices; these reports helped to increase competition which pushed the spread price down on OTC trades - this is why OTC rates remain so competitive.
All Wirex users can enjoy OTC rates when exchanging their digital currencies. To make an exchange, fund your account using a credit or debit card, bank transfer or any crypto you already hold. Choose the currency you want from the in-app list, the amount you’d like to exchange and confirm. It’s that easy. Why not try it now?