It is no secret that 2018 is the year cryptocurrency enthusiasts would rather forget. Notably, that is the period the cryptocurrency market almost wiped out all the capital investors committed. However, there is evidence of a robust crypto market in the statistics for over-the-counter trades.
Increasing preference for stablecoins
According to a blog post on Medium, Circle completed over 10,000 crypto-focused trades over-the-counter. Notably, the trades involved 600 counterparties, and they were worth $24 billion. Interestingly, such a volume in transactions signifies a robust crypto market with plenty of potentials.
Further, being in a position to execute such a large number of trades for an industry as young as cryptosphere is crucial. For Circle, the firm sees itself as an essential conduit for liquidity in the crypto market. Interestingly, the firm partners with approximately 1,000 clients of institutional stature. These include endowments, OTC Desks, crypto exchanges, and asset managers.
Interestingly, Circle is hopeful that 2019 will be much more exciting regarding transaction volumes. The firm noted that the institutional adoption of crypto assets is on the rise globally. Notably, stablecoins are at the forefront by attracting many more users due to their inherent stability.
Increased institutional investor activity signifies a robust crypto market
Further, Circle noted that the cryptocurrency sector is working tirelessly to surmount various challenges in the industry. For instance, some developers are working towards a crypto custody mechanism that promises security. In particular, this is about hacking that was endemic in the initial years of the industry.
On the other hand, the issue of regulatory clarity is improving. In the United States, some states are coming out to support cryptocurrency openly. Notably, initiatives such as Ohio enabling businesses to pay taxes in crypto are changing the narrative towards digital currency.
Interestingly, the increased activity in the OTC trades sector implies that many more institutional investors are embracing crypto assets. Typically, OTC trading services are only available to investors who trade in large volumes which is typical of institutional investors. Further, it is clear that Wall Street finally sees the great potential that crypto assets offer as investment vehicles.
