Definition ∞ An OTC deal is a direct digital asset transaction between two parties, bypassing public trading platforms. These over-the-counter transactions are typically negotiated privately and executed without being reflected on an exchange’s public order book. OTC desks facilitate large block trades for institutional investors or high-net-worth individuals, minimizing price impact that might occur on public exchanges. Such deals offer discretion and customized pricing, making them suitable for significant capital movements.
Context ∞ Crypto news often references OTC deals when reporting on large-scale institutional buying or selling of cryptocurrencies, as these transactions can indicate major shifts in market sentiment without causing immediate price volatility. The growth of OTC markets reflects increasing institutional participation and the need for more efficient execution of substantial trades. Regulatory oversight of OTC desks remains a developing area of discussion.
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