Blockchain.com takes over Altonomy’s over the counter trading desk

Blockchain.com takes over Altonomy’s over the counter trading desk

The crypto exchange aims for OTC network expansion in the altcoin space with Altonomy deal

Blockchain.com has reportedly inked a deal with Altonomy to acquire its over the counter (OTC) trading network.

Dan Bookstaber, Vice President of Markets at Blockchain.com, disclosed that their firm has already added its existing OTC trading capabilities with Altonomy’s “core systems” and has transferred 26 employees from Altonomy to Blockchain.com.

Founded in 2018, Altonomy is an OTC firm specializing in digital assets investments and market making, with a particular focus on altcoins such as the latest ApeCoin (APE) to connect buyers with suitable sellers on its OTC desk.

Blockchain plans on leveraging Altonomy’s robust clientele of more than 1,000 clients to expand its presence into crypto OTC trading.

While Altonomy has successfully managed more than $16 billion in spot market OTC trades in 2021, Blockchain.com reported $10 billion in overall activity from institutional crypto business lines comprising of OTC.

Altonomy’s impressive client network, altcoin expertise, and Asia footprint were the aspects that sealed the deal. Blockchain.com previously secured one of the larger OTC desks, relatively more complex than spot trades, and hopes for Altonomy’s business to amplify its trading altcoin capacity.

As per Mr. Bookstaber, Altonomy’s technology displays finesse in finding liquidity and handling significantly lower liquidity coins. They also seem to have a solid network within the ecosystem of experts creating these clients.

The takeover comes at a time when banks are just starting to realize and understand the concept of complex cryptocurrency trades.

Starting this week, Goldman Sachs (GS) announced the facilitation and execution of its first OTC crypto options trade – a non-deliverable bitcoin (BTC) product option - in line with Galaxy Digital.

Imperative to note that trading altcoins on OTC networks are a different avenue altogether even though APE and other new altcoins are not equipped with well-established and highly liquid market unlike their bitcoin counterparts notably when it comes to trading debut. 

Source Credit: https://www.coindesk.com/business/2022/03/21/crypto-exchange-blockchaincom-acquires-altonomys-otc-desk/