Hodl Hodl Unveils Non-custodial OTC Bitcoin Trading Platform November 4, 2018 November 4, 2018 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsNovember 4, 2018 by Kelly Cromley

Hodl Hodl Unveils Non-custodial OTC Bitcoin Trading Platform

Cryptocurrency exchange Hodl Hodl has unveiled the world’s first non-custodial OTC trading desk for Bitcoin. Hodl Hodl is a peer-to-peer cryptocurrency exchange that doesn’t hold users’ funds.

The non-custodial OTC trading desk facility has been launched in partnership with Tenbagger, which holds an Estonian license for offering a Virtual currency exchange service in accordance to the EU regulations.

The facility will “match and guide” counter-parties, facilitating the purchase and sales of Bitcoin (BTC) at “competitive” rates. Additionally, Hodl Hodl gets the credit of being the world’s first OTC platform offering non-custodial escrow services for buying and selling Bitcoin.

Hodl Hodl also explained that “There has been a vibrant OTC Bitcoin trading market operating in parallel to the existing exchanges, but none of them are offering non-custodial escrow services for cryptocurrencies which would eliminate the risk of losing funds.”

By utilizing the Bitcoin blockchain, the OTC escrow service will function on the safest cryptocurrency network available. This implies, the new service will not only avoid custodianship and counterparty risk but also makes full use of the Bitcoin network that has a record 99.98% uptime over the past decade.

There are multiple benefits when custodians and other middlemen are made unnecessary. First, transactions are more safer as it is all carried out on the Bitcoin blockchain in P2P fashion.

Second, OTC trades have no direct effect on the BTC spot price unlike exchange based trades. Finally, trades are settled on the same day and the platform offers 24/7 support and guarantee a “private” trading experience.

For every trade, a unique multisig escrow account is established on Bitcoin’s blockchain. This guarantees transparency and a fool proof security.

Hodl Hodl has mentioned that this new facility will not have an impact on their Bitcoin and Litecoin exchange, launched in early 2018. The exchange remains the only non-KYC/AML, non-custodial P2P platform where any quantity of crypto can be traded.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.