Definition ∞ OTC Services, or Over-The-Counter services, facilitate the direct trading of assets between two parties, away from public exchanges. These services are particularly utilized for large volume transactions that could otherwise significantly impact market prices if executed on an open order book. OTC desks connect buyers and sellers, negotiate terms, and execute trades privately, offering price discretion and reduced slippage for substantial orders. They are a critical component of institutional trading in both traditional and digital asset markets.
Context ∞ The role of OTC Services is frequently highlighted in cryptocurrency news when discussing large block trades or the movement of significant capital into or out of specific digital assets. Reports often detail the volume of OTC transactions as an indicator of institutional interest or strategic asset rebalancing. The discreet nature of these trades means they can absorb large orders without immediately reflecting price pressure on public exchanges, making them a key mechanism for institutional participation.
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