The social investment company – eToro – has reportedly announced its plans to launch an OTC service for hedge funds.
According to the news reports, eToro intends to set up an off-the-counter trade platform in London. The decision to develop such service was driven by demand from large investors, which are willing to try trading of digital coins.
“We are launching an OTC desk for institutions. We’ve seen more and more interest from corporates and institutions...We’ve actually set up our corporate team here in the UK to start setting up accounts to trade on eToro. We’ve announced that we’re launching the exchange as well so, between the exchange and the OTC desk, we’re also starting to serve more potential institutions and financial institutions,” reported Business Insider, citing the company CEO.
With OTC service, market insiders can allocate large transactions, while institutional investors can also avoid certain risks. In particular, trading outside exchange platforms may help them to get rid of risks of losing funds due to, for example, exchange hacking.
Moreover, many global leading companies, in particular, Goldman Sachs and Barclays, are expressing intentions to enter this space. In this situation, eToro did not want to lose the chance for expansion seeing stronger demand in the sector.
For now, eToro supports such cryptos, like Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Ethereum Classic, Dash, Stellar, NEO and EOS.
As it was reported earlier, the platform already expressed intentions to launch crypto trading platform and currency wallet back.