Definition ∞ OTC deals, or Over-the-Counter deals, are direct transactions of digital assets between two parties, bypassing public exchanges. These transactions are typically conducted by institutional investors, high-net-worth individuals, or large-scale traders who seek to buy or sell substantial quantities of cryptocurrency without impacting public market prices. OTC desks provide privacy, personalized service, and access to deeper liquidity than retail exchanges can offer for large block trades. This method facilitates significant capital movements in a controlled environment.
Context ∞ The key discussion surrounding OTC deals often involves their role in institutional digital asset acquisition and their impact on market liquidity and price discovery. A critical future development entails increasing regulatory scrutiny on OTC desks to ensure compliance with anti-money laundering and know-your-customer protocols. This provides immediate context for news regarding institutional investment flows and large-scale market movements.
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