Cryptocurrency
Crypto OTC traders now have access to a central counterparty to manage risks
As reported by The Block, “Institutional crypto firm Liquidity Offset Network (lon.exchange) has launched a central counterparty service for over-the-counter (OTC) players. “The service, dubbed ‘OTSafe,’ helps OTC traders reduce credit risk and manage collateral requirements, according to a statement shared with The Block on Monday. Traders QCP Capital and LedgerPrime have begun using OTSafe. […]
As reported by The Block, “Institutional crypto firm Liquidity Offset Network (lon.exchange) has launched a central counterparty service for over-the-counter (OTC) players.
“The service, dubbed ‘OTSafe,’ helps OTC traders reduce credit risk and manage collateral requirements, according to a statement shared with The Block on Monday. Traders QCP Capital and LedgerPrime have begun using OTSafe.
“’One crucial infrastructure piece that is required for the Crypto OTC market to reach institutional scale is professional clearing and risk/collateral management. OTsafe serves that function perfectly,’ said Darius Sit, managing partner at QCP.
“Shiliang Tang, LedgerPrime’s chief investment officer, said OTSafe will help ‘greatly alleviate the operational burden and credit risk for all firms in the ecosystem, helping to usher in more institutional trading.’”