OTC Crypto Trading vs Exchanges: How Businesses Secure Large Trades at the Best Rates

Traditional banking infrastructure is no longer dependable for African businesses managing large cross-border transactions. Delays, unpredictable FX rates, and high fees often make these systems more of a liability than a solution.

To overcome these limitations, many companies have integrated stablecoins like USDT and USDC into their daily operations. Stablecoins are now widely used for international payments, treasury operations, and procurement, offering faster settlement, better access to digital dollars, and fewer restrictions compared to legacy financial rails.

But as stablecoins become part of day-to-day operations, the next question is no longer about whether to use digital assets; it's about how to execute large trades efficiently.

That’s why more businesses are turning to OTC (over-the-counter) trading desks, which are purpose-built for large crypto transactions. This article breaks down OTC trading, how it compares to traditional exchanges, and how businesses are using it to secure large crypto trades at the best rates.

Understanding OTC Crypto Trading

OTC, or over-the-counter trading, refers to large crypto transactions that happen directly between two parties rather than through a public exchange. These trades are typically facilitated by a professional trading desk or broker who matches the buyer with a seller off the public order book.

The main advantage of OTC is that the entire transaction is privately negotiated. Instead of placing a large order on a retail exchange and watching the price shift against you as the trade executes, OTC desks quote a single fixed price for the full trade size, giving businesses more stability and visibility on total cost.

In traditional finance, OTC desks are standard practice for trading large volumes of stocks, bonds, or foreign currency. The same principle now applies to crypto: high-value trades require a different kind of infrastructure.

How Crypto OTC Trading Works

OTC trading is straightforward trading of assets, but built around direct relationships. Here is how a typical process looks for a business:

Initiate a quote request:  The business contacts the OTC desk and specifies the asset, trade size, and the fiat or stablecoin pair involved. For example, a Nigerian company might request a quote to buy 120,000 USDT using NGN.
Receive a fixed quote:  The OTC desk offers a quote based on real-time market conditions and the depth of available liquidity. This quote reflects the total price for the entire trade, including any fees.
Approve and settle: Once the quote is accepted, the business sends the required funds. Settlement is typically completed within minutes or a few hours, depending on local fiat rails.
Receive crypto or fiat:  The business receives the agreed amount of stablecoins or local currency into its wallet or bank account.
This process avoids the delays, price fragmentation, and exposure that usually come with trading large amounts on public exchanges.

Crypto OTC vs Exchanges: Which Offers Better Execution?

Crypto exchanges are designed for accessibility and convenience. They allow any verified user to buy or sell assets at market rates, using an open order book where prices are determined by supply and demand. For businesses just starting to use crypto for smaller payments, this model is sufficient. However, as trade size increases, the limitations of exchanges become more pronounced.

1. Price Slippage and Trade Splitting

Let’s say a logistics company wants to buy 100,000 USDT to pay multiple suppliers. On a public exchange, that order cannot be filled at one consistent rate. Instead, the system matches them with the best available prices at different levels in the order book. The first part of the order may fill at 1 USDT for 1.00 USD equivalent. The next part fills at 1.01, then 1.02, and so on. This is known as slippage. A 1.5 percent slippage on 100,000 USDT translates to a loss of 1,500 USD before the transaction is even complete. For companies working with narrow margins, this is a major operational cost.

2. Lack of Negotiation and Visibility

In exchange, there is no opportunity to negotiate pricing based on volume. Whether you are buying 1,000 USDT or 100,000, the pricing is entirely market-driven. Worse still, the trade is publicly visible on the exchange, which exposes the business to front-running risks. Traders and bots can see large orders and act accordingly, worsening pricing even before execution is finished.

3. Fiat Limitations and Delays

Most public exchanges do not offer strong fiat on- and off-ramps for African currencies. A business may need to fund in NGN or GHS but will face delays, limits, or currency conversion issues when trying to complete the trade.

In some cases, withdrawals are throttled, blocked during weekends, or delayed due to banking integrations. This undermines the speed and flexibility that crypto was supposed to solve.

Ready to secure better rates, settle faster, and streamline how your business settles payments? Book A Demo Today. 

Why Businesses Prefer OTC Trading

As businesses increase their use of stablecoins, execution quality becomes a competitive advantage. OTC desks provide exactly what finance and operations teams need to scale without inefficiencies. Here is what OTC desks offer in response to those priorities:

Aggregated liquidity: OTC desks source liquidity from multiple partners and internal reserves, allowing them to quote better prices for large trades.
Fixed, all-in pricing: There are no partial fills or shifting rates. The business gets a single quote for the full amount and knows the exact cost before executing.
Faster settlement: OTC desks are often integrated with local banking infrastructure. This means fiat payments can be made and settled the same day, sometimes in under an hour.
Direct support: Unlike exchanges, where support may take hours or days, OTC desks assign brokers or account managers to assist with compliance, documentation, and trade execution.
Lower counterparty risk: Because the desk acts as the intermediary, the business is not exposed to the same risks as in peer-to-peer or thinly regulated environments.

For example, a fintech company needing to convert 500,000 GHS into USDC for treasury operations may not find that level of liquidity or support on a retail platform. However, an OTC desk can lock in a quote, fund the transaction, and complete the trade in a fraction of the time, all while protecting pricing and visibility.

How to Choose the Best OTC Desk For Your Business

Not every OTC provider offers the same experience. Here are the key criteria a business should consider when evaluating a trading partner:

Regulatory clarity: Work with desks that operate in alignment with local financial regulations and offer proper KYC onboarding. This helps with audit trails and reduces legal risk.
Stablecoin liquidity: Ensure that the desk can handle the asset types and trade sizes your business needs, especially for USDT and USDC.
Fiat coverage:  The best desks offer direct settlement in local currencies, not just USD or EUR. This is critical for businesses operating across Africa.
Execution reliability: Ask how quickly trades are settled and what kind of support is available. A delay in receiving USDC can mean a missed shipment or delayed payroll.
Transparency:  A professional OTC desk will provide documentation, breakdowns, and reporting tools for your internal finance team.

The Problem with Crypto OTC Telegram Groups

Some businesses turn to Telegram OTC groups, hoping for better rates. While informal markets may seem convenient, they present serious risks:

• No escrow protections
• No regulatory oversight
• No formal trade records
• High exposure to scams or non-delivery
  
  These environments may work for individuals, but they are incompatible with corporate treasury requirements. A secure commercial trading platform like Yellow Card offers the same convenience with the structure, compliance, and speed that institutional clients require.

Read Also: Legit Crypto OTC Trading Platform to Use for High Volume Trades

Why Yellow Card’s Commercial Trading Desk Is the Best Fit For your Business

Yellow Card’s commercial trading desk is designed for African businesses operating at scale. The platform supports over 15 African currencies and is operational in more than 20 countries across the continent. With access to top digital assets including USDT, USDC, BTC, and other major cryptocurrencies, Yellow Card provides deep liquidity and fast execution tailored to business needs.

The service includes a personalised trading experience, with each client assigned a dedicated broker for direct support. Businesses benefit from full regulatory compliance, strong market expertise, and a professional treasury board overseeing operations. Yellow Card also supports multiple payment methods, enabling faster local currency settlements and flexible trade funding across markets.

For businesses looking to execute large crypto trades efficiently, securely, and with confidence, Yellow Card delivers the infrastructure, service, and scale that enterprise operations require.

Ready to secure better rates, settle faster, and streamline how your business settles payments? Book A Demo Today.