Thursday, August 2, popular P2P cryptocurrency exchange Hodl Hodl announced a new business line aimed at large OTC trades.
The exchange says the decision to launch new services was taken “after multiple requests from institutional brokers and large volume traders.”
— Hodl Hodl (@hodlhodl) 2 August 2018
“We recently launched “private offers” — a new feature for OTC traders — and after multiple requests from institutional brokers and large volume traders, we have concluded that there is a huge demand for non-custodial escrow services in the OTC market. This, together with our experience and knowledge, ensures smooth and secure trading,” the announcement says.
Hodl Hodl representatives also stress, that currentl, most OTC firms/brokers use their own centralized escrow services to trade with customers, which, as they believe, is not safe, and large trades should be executed via non-custodial multisig escrow.
In order to ensure the highest security and quality standards, in the upcoming months Hodl Hodl team will:
- Develop multi-signature escrow addresses with 3 signatures. We acknowledge that large volume trades require a more flexible approach. As requested by our OTC partners, we’re currently working on the implementation of a multi-signature escrow addresses with 2-out-of-3 signatures required to release the funds: one signature goes to seller, one goes to the buyer, and one goes to Hodl Hodl. In order to release funds from escrow, you’d need 2 out of the 3 keys to sign the release transaction. So in case there is a dispute, Hodl Hodl as the mediator will be able to release funds to either the seller or the buyer. Moreover, multisig escrow addresses with 3 signatures will be available to all of our customers.
- Open its own OTC trading desk. To ensure top quality services, we are currently hiring brokers to our own OTC trading desk. This will allow us to match buyers with sellers and vice versa.
- Announce official brokerage arm of HodlHodl. We are currently in the process of receiving a brokerage license from an EU country for our own financial company. This will allow us to trade directly with our customers.
The exchange also says that this new direction doesn’t affect its current operations. Hodl Hodl is still a non-KYC/AML non-custodial P2P exchange suitable for any type of trade — small or large.
“We are sticking with our original plan to help people buy Bitcoin/Litecoin in an easy and secure way,” the Hodl Hodl team added.
Based Blockchain Network