KuCoin exchange will soon launch its Over the Counter (OTC) trading platform for trial transactions, as revealed in an official announcement.
The service will initially cover the OTC of the USDT/CNY pairing, with Tether and the Chinese Yuan to be added at a later stage.
The KuCoin OTC desk, which facilitates dealing between trade parties directly, instead of relying on the supervision of an exchange, joins similar services of other top US crypto businesses.
Coinbase, Poloniex, Gemini, and Circle started their over-the-counter trading operations earlier last year. The OTC business complements those exchanges’ underlying services as many institutions were already using OTC as a proxy for crypto trading. These moves show how the cryptocurrency space is maturing in a similar way to the $5 trillion foreign exchange market.
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KuCoin explained that its OTC platform would initially launch the USDT/CNY pair during the trial period, with more tokens and fiat currencies to follow suit soon. Users will be able to purchase tokens or coins via the supported fiat currency on KuCoin OTC.
During the beta testing phase, the crypto-fiat trading will be temporarily closed from 00:00:00 to 07:59:59 (UTC+8) each day.
More about KuCoin
KuCoin, established in September 2017, is one of the popular cryptocurrency exchanges, having handled almost $181 million worth of cryptocurrency transactions over the last 24 hours according to coinmarketcap.com.
KuCoin had been in the news in late 2018 as the venue had once claimed to be based in Hong Kong. In August 2018, a journalist visited the site and discovered that the company was not actually there. KuCoin responded, saying that Hong Kong was the site of its mailing address, while its actually headquarters is in Singapore.
The crypto exchange moved to the EOS blockchain from Ethereum shortly after the former’s launch in April, and earlier in November raised $20 million in funding from three different investment firms. In August, the exchange announced that it would be keeping its KCS tokens locked up for an additional year, until September 2019.