Finery Markets: OTC Trading Desks Helped Mitigate Impact of Recent Crypto Liquidation Crisis

OTC Desks Act as Key Stabilizers Amid Binance Liquidation, Finery Markets Says

Over-the-counter (OTC) trading desks helped stabilize the crypto market during last week’s sharp downturn, acting as shock absorbers that limited systemic risk, according to Finery Markets, a top-ranked crypto ECN and trading platform.

On Friday, Bitcoin (BTC) fell from about $122,000 to $103,000, with most losses occurring late in the session. Altcoins and stablecoins—including Ethena’s USDe, Wrapped Beacon Ether (wBETH), and Binance Staked SOL (BNSOL)—also experienced significant volatility. USDe briefly dropped to $0.65 on Binance due to platform inefficiencies, though it remained stable on other venues like Curve, Fluid, and Bybit.

“The crisis highlighted the value of OTC private rooms, which act as a firewall against systemic contagion due to differences in order book structure,” Finery Markets said.

OTC desks offer private liquidity pools, allowing large traders and institutions to transact without triggering public panic, unlike centralized exchanges with visible order books.

During the October 10–12 liquidation, BTC/USDT and ETH/USDT volume on Finery’s OTC rooms rose 107% week-over-week, outpacing 48% growth on centralized exchanges. Bid-ask spreads narrowed sharply, providing smoother execution for large trades and reinforcing market stability.

Finery Markets emphasized that OTC infrastructure plays a critical role in containing volatility, enabling orderly trading during periods of extreme stress.