What is a crypto OTC desk?

A crypto OTC desk is a service that lets a buyer or seller trade a large amount of cryptocurrency in a single private deal instead of placing orders on an exchange. OTC stands for over-the-counter, meaning the trade is agreed between the parties rather than matched publicly. Large exchanges such as Kraken and Binance run OTC desks alongside their public markets.

Why do traders use crypto OTC desks?

An exchange order book shows a limited number of coins for sale at each price. A very large market order eats through those offers and pays more and more as it goes, an effect called slippage. The order can also be seen by everyone, which may move the price before it is finished.

An OTC desk solves this by quoting one price for the full amount. Kraken, for example, says its desk gives a single quote for orders of $100,000 to $1 million, so the client knows the total cost before trading, and describes the service as private and discreet. Both Kraken and Binance say their desks serve institutions and high-net-worth individuals, the kind of large holders often called whales.

How does OTC crypto trading work?

The details differ by firm, but the steps are similar.

1. Onboarding. The client opens an account and passes identity and anti-money-laundering checks. Kraken requires a Pro-level account. Binance requires a verified, fully funded account.
2. Quote. The client asks for a price, either by chat with a trader or through a request-for-quote (RFQ) screen that returns a firm price within seconds. Binance also offers private indications of interest, where a client signals a trade it might make, and automated strategies that split an order over time.
3. Settlement. The client funds the trade and receives the coins, or the reverse. Kraken says settlement happens within 24 hours and can go to an external wallet or a bank account. RFQ trades from a funded account settle automatically.

How much do you need to buy crypto OTC?

Minimums are high. As of October 2026, Kraken's bitcoin OTC desk generally starts at about $100,000 and Binance sets $200,000 for manual spot RFQ trades. Both say they charge no separate desk fee for spot trades. Instead, their cost is built into the quoted price, which Kraken calls all-inclusive.

Is bitcoin OTC trading regulated?

Exchange-run desks apply identity and anti-money-laundering checks before trading. In the UK, any business exchanging crypto for money or other crypto, including peer-to-peer providers, must register with the Financial Conduct Authority for anti-money-laundering purposes. The FCA stresses that registration is not an endorsement and that most crypto customers have no access to the Financial Ombudsman or the compensation scheme.

Trading privately also means relying on the other side to deliver. Anyone approached by a self-described OTC trader through social media or messaging apps should check the firm through official channels, since impersonation is a common feature of crypto scams.