Definition ∞ OTC transactions, or Over-The-Counter transactions, are direct trades of financial instruments, including cryptocurrencies, conducted privately between two parties. These trades occur outside of traditional public exchanges, often involving large volumes that could otherwise impact market prices on open order books. They are typically facilitated by brokers or specialized desks, offering discretion and customized pricing. OTC markets provide liquidity for significant block trades without public market exposure.
Context ∞ Crypto news often reports on OTC transactions, especially concerning large institutional investors moving substantial amounts of digital assets. These trades can indicate significant institutional interest or large-scale asset rebalancing without causing immediate market disruption. The opacity of OTC markets compared to public exchanges is a frequent topic of discussion regarding market transparency. As institutional participation grows, OTC desks play an increasingly vital role in managing large crypto positions.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
