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Institutional Digital Asset Platform, Liquidity Offset Network (<a href="https://www.lon.exchange/">lon.exchange</a>) has launched OTSafe, a central counterparty service for OTC traders. In a statement given to The Block Liquidity Offset Network mentioned that OTSafe would help on-the-counter players manage collateral requirements and reduce credit risk. Top Digital asset trading firms, including LedgerPrime and QCP Capital, has already started using OTSafe. The managing partner at QCP said that for Crypto OTC market to reach institutional scale, it needs risk management and professional clearing, which is all offered in OTSafe.
<h2>What Is Over-The-Counter Trading (OTC)?</h2>
Over-the-counter trading (OTC) is a contract that happens directly between two firms without any guidance of exchanges.

OTC market is decentralised, unlike traditional exchange where trading is done from dealer networks directly. Over the Counter <a href="https://www.cryptoknowmics.com/crypto/binance-trading-fee-revenue-lagging-behind-huobi-and-okex/">trading</a> includes various assets, including that all commodities to financial instruments such as stocks and their subsidiary products. The involvement of traders is not necessary as they can get help from brokers and OTC desks. The trading securities that are not listed on a formal exchange are called OTC Desks.
<h2>How OTSafe Will Help The OTC Traders Grow?</h2>
OTSafe will relieve the operational burden as well as credit risks from all on-the-counter traders, eventually helping the firm further lead in institutional trading, said LegerPrime’s chief investment officer, Shiliang Tang.

This OTC service also offers crypto derivatives management tools that including risk and margin calculation tools, matching tools and valuation tools. According to the CEO of OTSafe, <a href="https://www.cryptoknowmics.com/crypto/singapore-declares-new-anti-money-laundering-rules-for-cryptocurrency-businesses/">Crypto-currency</a> is one of the most growing areas but yet behind its potential growth. With OTSafe, the company is helping not only the OTC market but the overall industry to reach that potential.

Presently, a former crypto trader at Cumberland (a well-recognised crypto OTC department run by DRW) is hired by the company to run its Europe and U.S operations.

Liquidity Offset Network Launches OTC Counterparty Service Platform

Liquidity Offset Network launched a central counterparty platform for OTC traders to ease the burden of credit risks that adds to the growth of the market.

Javeria is into the crypto world ever since she heard about it and is pursuing her interest through cryptoknowmics. She is a sensational poet, technical writer and content strategist. Not to mention that she can go crazy when it comes to vampires and Wonder woman.

Liquidity Offset Network Launches OTC Counterparty Service Platform

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