What Does a Crypto OTC Desk Do with Stablecoins Like USDC?

What Does a Crypto OTC Desk Do with Stablecoins Like USDC?

What Does a Crypto OTC Desk Do with Stablecoins Like USDC?

USDC

This is part of a series to help people understand the various ways USD Coin (USDC) powers the crypto ecosystem. The other blogs in this series will be available here in the coming weeks.

Crypto over-the-counter (OTC) trading desks are an essential part of the crypto asset trading ecosystem and stablecoins like USD Coin (USDC) play an integral role in making sure OTC desks can efficiently capitalize on market movements.

 

crypto otc desk

 

Crypto OTC desks use USDC for three main reasons: as trading capital, as a quote currency, and as a counterparty settlement instrument.

Prior to the emergence of stablecoins, crypto traders who preferred to remain in crypto used BTC as their quote currency. Due to the volatility of bitcoin, this was not ideal for professional traders. Alternatively, traders could trade fiat-to-crypto by linking up their bank accounts to exchanges but slow wire transfers were a persistent issue for traders.

Today, thanks to stablecoins, traders have the ability to move in and out crypto using fiat currency in tokenized form. Fiat-backed stablecoins like USDC function similarly to cash, but with added flexibility. For OTC desks (and their customers), that means USDC is an extremely effective quote currency to use for trading.

To learn more, please download the full use case here:

 

usdc otc desk

 

If you want to try USDC, find out how here

 

usdc tokenizer

 

Related blogs

View all
Integrating USDC with Programmable Wallets
USDC

Build a USDC Payment-Gated App with Circle SDK

Marcos Placona | September 29, 2023

Learn how to integrate Circle’s SDK to build a robust paywall using on-chain USDC payments. Unlock the potential for seamless, secure revenue

Read story about Build a USDC Payment-Gated App with Circle SDK
Integrating USDC with Programmable Wallets
USDC

Integrating USDC with Programmable Wallets

Corey Cooper | September 29, 2023

Discover how to seamlessly integrate USDC payments into your apps using Programmable Wallets

Read story about Integrating USDC with Programmable Wallets
Integrating USDC with Programmable Wallets
USDC

Build a Modern Payments Infrastructure with Circle and USDC

Marcos Placona | September 28, 2023

Learn how to construct a robust payment infrastructure using Circle’s tools and the stability of USDC.

Read story about Build a Modern Payments Infrastructure with Circle and USDC