Binance latest actions are paving the way for institutional investors to penetrate the crypto space safely.
Binance Labs has reportedly invested $3 million in Koi Trading which is an over-the-counter crypto trading startup in San Francisco.
Koi has been designed to be a reliable OTC pathway for financial institutions to enter the crypto market while at the same time providing research and consulting services.
Bringing institutional money into the crypto space
CCN reported that Ella Zhang, head of Binance Labs said that the platform aims to give Wall Street investors a completely secure and compliant way to penetrate the market.
“Koi Trading’s mission is to bridge fiat and cryptocurrencies in a compliant manner. This aligns with our broader vision at Binance to build the infrastructure which provides the freedom of value exchange globally.”
Hao Chen, the CEO, and founder of Koi Trading said that China has been seeing a rise in OTC trading since the country banned the crypto exchanges back in 2017.
He hopes to offer a more compliant and professional way to facilitate OTC trading in the country.
On the other hand, OTC trading is becoming popular not only in China but across the globe.
“Our team of experienced traders and sales personnel will join forces to tap into vast networks of counterparties in North America, Asia, and the EU, bridging the gap that divides the current OTC landscape,” he says.
Koi has a powerful AML program, great banking relations in the US, and now with this latest investment coming from Binance Labs, they will be able to reduce trust and information asymmetry, while at the same time, improve crypto OTC deal close rate.
Binance has joined more industry leaders such as Coinbase, Circle and Intercontinental Exchange in a global effort to develop a secure and compliant infrastructure that’s set to bring institutional money into the cryptosphere.
Binance’s partnership with Koi Trading will definitely help to rectify the OTC trading issues at a global scale, and it will provide a better option for interested clients.