Circle Internet Financial
Circle Internet Financial Logo

Oct 01, 2024

November 19, 2019

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

what you’ll learn

Stablecoins like USD Coin (USDC) play an integral role in making sure OTC desks can efficiently capitalize on market movements. Learn more!

What Does a Crypto OTC Desk Do with Stablecoins Like 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 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 posts

USDC and CCTP are coming to Aptos

USDC and CCTP are coming to Aptos

November 21, 2024
Now Available: Native USDC on Sui

Now Available: Native USDC on Sui

October 8, 2024
Migration Guide: Bridged to Native USDC on Sui

Migration Guide: Bridged to Native USDC on Sui

October 8, 2024
Blog
what-does-a-crypto-otc-desk-do-with-stablecoins-like-usdc
No items found.