The Over-the-Counter (OTC Trade) market is the premium solution for institutional investors and High-Net-Worth Individuals (HNIs) who need to execute large-volume cryptocurrency transactions (typically ₹10 Lakhs or more on SunCrypto) without impacting the public exchange price.
An OTC trade bypasses the visible order book used in regular spot trading, instead relying on a network of private liquidity and a dedicated intermediary (the OTC Desk) to ensure fixed pricing and discreet execution.
Why OTC Trade?
In a traditional exchange like SunCrypto’s main market, placing a massive “buy” or “sell” order immediately consumes all the available small orders in the order book, pushing the price rapidly up or down.
- Slippage: This results in slippage—the difference between the intended price of your trade and the actual, worse price you receive.
- Market Impact: The large trade becomes visible, potentially causing panic or momentum trading that works against the investor.
The OTC Trade desk solves this by executing the entire block trade privately, off-exchange.
Phase 1: Initiation and Negotiation
The process is highly personalized, conducted through direct communication channels with a dedicated account manager.
A. Client Contact and Requirement
- Initiation: The client (individual or corporate) contacts the SunCrypto OTC Desk (e.g., via a dedicated email or inquiry form) to express their intent to buy or sell a large amount of a specific asset (e.g., 50 BTC for INR).
- Verification: The client must have completed full KYC verification on SunCrypto. For institutional clients, enhanced due diligence (EDD) is required to ensure compliance.
B. Quote Generation and Price Lock
- Liquidity Sourcing: The OTC manager utilizes SunCrypto’s extensive network of internal and external liquidity providers to source enough supply for the block trade.
- Fixed Quote: The manager provides the client with a single, fixed, all-inclusive price for the entire transaction. This price is guaranteed to be executable, removing the risk of slippage.
- Price Lock: The client must accept this quote within a short, specified timeframe (often just a few seconds). Once accepted, the price is locked in, regardless of any immediate fluctuations in the public market.
Phase 2: Execution and Settlement
Once the price is agreed upon and locked in, the transaction moves swiftly into the execution and settlement stage.
A. Execution (Off-Book)
- The trade is executed off-the-public order book, meaning the large transaction is not visible to the retail market. This is the core function of the OTC trade desk.
- The trade is a direct swap between the client and the liquidity source (often the OTC desk itself, acting as a principal).
B. Secure Settlement
Settlement is typically near-instant once the funds are verified, which is a key advantage over slower traditional finance settlements.
The entire process, from negotiation to settlement, is usually completed within minutes, provided all compliance checks and transfers are smooth.
Post-Trade Compliance and Benefits
The OTC trade process concludes with compliance steps and offers unique benefits unavailable on the retail exchange.
A. Regulatory Compliance (TDS)
- TDS Handling: For all sales (crypto-to-fiat or crypto-to-crypto), SunCrypto automatically handles the mandatory 1% TDS (Tax Deducted at Source) as per Indian VDA tax regulations. All trades are fully compliant.
- Documentation: The OTC Desk provides detailed post-trade reporting and documentation, which is essential for institutional auditing and tax reporting purposes.
B. Core Benefits Summary
- Price Certainty: Guaranteed fixed price for the entire block trade, eliminating slippage.
- Privacy: Trade size and specifics are kept confidential, protecting the client’s trading strategy from the public eye.
- Deep Liquidity: Access to substantial liquidity pools ensures even the largest orders can be filled without issue.
- Personalized Service: A dedicated account manager offers bespoke support, especially useful for handling complex transactions or cross-border transfers.
The OTC trade is the gold standard for large-scale, efficient, and discreet crypto asset management, making the SunCrypto OTC Desk a critical tool for serious high-volume participants in the Indian market.
Disclaimer: Crypto products & NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.