Overview
Japanese cryptocurrency exchange Coincheck has officially announced the launch of an over-the-counter (OTC) trading service tailored for institutional clients. Initially focused on Bitcoin, the platform enables large-volume transactions with competitive pricing.
Key Features of Coincheck’s OTC Service
- Minimum Order Size: 50 BTC (~$205,423 at current rates).
- Trading Hours: Weekdays, 10:00 AM–3:00 PM JST (UTC 1:00 AM–6:00 AM).
- Direct Transactions: Bypasses exchange order matching, allowing parties to negotiate terms privately.
Coincheck plans to expand support to other cryptocurrencies in the future.
Background and Regulatory Compliance
Coincheck’s journey has been marked by challenges:
- 2018 Hack: Lost $530 million in NEM tokens, leading to its acquisition by Monex Group in 2018.
- Rebuilding Phase: After a months-long service suspension, the exchange fully resumed operations in November 2021.
- Licensing: Now registered under Japan’s Payment Services Act with the Kanto Finance Bureau.
Future initiatives include reintroducing leveraged trading, convenience store deposits, and crypto-based utility bill payments.
Industry Trend: Growing Demand for OTC Services
Recent moves by other exchanges highlight the institutional shift toward OTC:
- Huobi Global: Launched a U.S.-based OTC desk in 2024.
- Bithumb Global & Bittrex: Rolled out similar services earlier this year.
👉 Explore institutional crypto solutions for secure, high-volume trading.
FAQ
Q: Who can use Coincheck’s OTC service?
A: Primarily institutional investors; retail traders must meet the 50 BTC minimum.
Q: How does OTC trading differ from standard exchange trading?
A: OTC offers negotiated prices and avoids public order books, reducing market impact for large orders.
Q: Is Coincheck’s OTC service available globally?
A: Currently limited to Japan; check local regulations for compliance.
Q: What security measures does Coincheck have post-hack?
A: Enhanced protocols, including cold storage and Monex Group’s oversight.
Why Institutions Choose OTC
- Price Efficiency: Bulk discounts and reduced slippage.
- Privacy: Shields trading strategies from public exposure.
- Flexibility: Custom settlement terms (e.g., fiat/crypto pairs).
For institutions eyeing Bitcoin, 👉 OTC platforms like Coincheck provide a streamlined gateway.