Crypto OTC traders now have access to a central counterparty to manage risks

Institutional crypto firm Liquidity Offset Network (lon.exchange) has launched a central counterparty service for over-the-counter (OTC) players.

The service, dubbed “OTSafe,” helps OTC traders reduce credit risk and manage collateral requirements, according to a statement shared with The Block on Monday. Traders QCP Capital and LedgerPrime have begun using OTSafe.

“One crucial infrastructure piece that is required for the Crypto OTC market to reach institutional scale is professional clearing and risk/collateral management. OTsafe serves that function perfectly,” said Darius Sit, managing partner at QCP.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By s