Japan-based cryptocurrency exchange Coincheck is reportedly bringing the two largest altcoins by market cap, Ethereum, and XRP, to large scale investors.
The platform has launched an Ethereum and XRP Over-the-Counter (OTC) trading service. The OTC trading desk will serve the needs of institutional investors that want to trade ETH and XRP worth millions of dollars. The move comes after the exchange launched a Bitcoin OTC trading desk that enabled institutional investors to buy large volumes of Bitcoin (BTC) directly.
Investors can only trade with a minimum of 20 BTC which as of the time of writing, amounts to around $103,020. The platform recommends trading at least 225 BTC, which at press time, is worth around $1.10 million.
For Ethereum (ETH), the minimum order volume has been pegged at 500 ETH, worth approximately $82,000. For XRP, on the other hand, the minimum has been set at 250K XRP – worth about $81,000.
If institutional investors foray into the crypto space, that will have a significant impact. Bitcoin bulls such as Mike Novogratz are speculating and have been speculating for a while that this will occur soon.
Last year, Novogratz told Bloomberg in an interview that the institutional flow of capital can be expected in the 1st or 2nd quarter of this year.
The Coincheck hack
Coincheck suffered one of the biggest crypto hacks in history of the world earlier last year, when $543 million in NEM coins were reportedly stolen from the exchange. In April 2018, a Japanese brokerage giant Monex acquired the exchange to improve its security standards and restore investors’ trust. The company also compensated those affected by the hack.
Several government agencies across the globe are now working to legitimize their local cryptocurrency market by implementing new regulatory measures. Most industry experts agree that the greatest hurdle facing the crypto space industry today is the lack of regulatory clarity from governments.