Cryptocurrency exchange Kraken to initiate its Over-The-Counter block trade service

On 17th September, the San Francisco based cryptocurrency exchange Kraken made an official Twitter announcement wherein the platform stated that it is expanding its services to Over-The-Counter [OTC] block trading. The blog post for the announcement read:

“Kraken is excited to announce a major expansion to our OTC trading platform which will enhance the execution of large block trades for clients worldwide. We offer deeper liquidity and private, personalized service to institutions and high net-worth individuals needing to fill large orders. “

Kraken also mentioned that the platform will now have an OTC desk wherein the users can trade blocks, such as €100,000,000, $100,000 or even 2,000 BTC. The exchange claimed to provide a secure, discrete service that will help the customers execute and settle the block trade.

An OTC is a venue for trading market entities such as equities and bonds other than on a formal, centralized exchange, such as the New York Stock Exchange [NYSE] or others. A dealer network enables the trading of these market entities, hence, making it a distributed service.

Subsequently, a block trade is buying/selling of equities or bonds at a large scale wherein the price is decided between two parties inside or outside of an open market. In a traditional market, ‘blockhouse’ is the term used for a mediator that initiates and carries out a block trade for two parties.

Earlier in September, the exchange found itself in a slight controversy wherein the rumors fled that a large number of employees were fired by Kraken in its Halifax, Canada location. A security breach was given as the reason for the alleged firing. However, Kraken refuted allegations of ceasing the operations and security breach in a latter report.

Currently, the cryptocurrency exchange trades almost all of the significant cryptocurrencies, namely, Bitcoin [BTC], Ethereum [ETH], Bitcoin Cash [BCH], Ethereum Classic [ETC], Ripple [XRP], Stellar Lumens [XLM], EOS, Litecoin [LTC], Monero [XMR], Zcash [ZEC], Dogecoin [DOGE], among others.

Regarding the other services of Kraken, Mohammed Sharaiyra, a cryptocurrency and blockchain space enthusiast on Twitter inquired:

“When are bringing back the USD deposits and withdrawals? Have you made a deas with any Bank yet?! Give me alternatives to withdraw my USD if it is going to take longer.”

Kraken Support responded and conveyed that the official blog will announce it on enabling international USD funding for the customers. It stated:

“We are working on establishing new banking relations. Any announcements concerning developments with international USD funding will be made through our blog”

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