OTC Desks Shield Crypto Market During Binance Liquidation, Finery Markets Reports
Over-the-counter (OTC) desks played a pivotal role in stabilizing the crypto market during last week’s sudden downturn, acting as shock absorbers that prevented volatility from spilling across the broader ecosystem, according to Finery Markets, a leading crypto ECN and trading platform.
On Friday, Bitcoin (BTC) dropped from around $122,000 to $103,000, with most losses hitting late in the session. Altcoins and stable crypto assets—including Ethena’s USDe, Wrapped Beacon Ether (wBETH), and Binance Staked SOL (BNSOL)—also experienced significant swings. USDe briefly fell to $0.65 on Binance due to platform-specific issues, while remaining stable on venues like Curve, Fluid, and Bybit.
“The crisis underscored the value of OTC private rooms, which act as a firewall against systemic contagion due to differences in order book structure,” Finery Markets said.
Unlike centralized exchanges, which rely on visible order books, OTC desks provide private liquidity pools that allow institutions and large traders to execute transactions without triggering panic-driven price swings. This dark liquidity helps prevent systemic stress from spreading.
During the October 10–12 liquidation, Finery Markets saw a 107% week-over-week surge in BTC/USDT and ETH/USDT volume on OTC private rooms—more than double the 48% growth on centralized exchanges. Bid-ask spreads narrowed sharply, demonstrating deeper liquidity and smoother execution for large trades. Trading 0.01 BTC was more efficient on Finery than on major platforms like Coinbase, Kraken, Bitstamp, or Binance.
Finery Markets’ report highlights how OTC infrastructure serves as a stabilizing force in times of market stress, enabling orderly trading and limiting contagion during extreme volatility.
