OTC (Over-the-Counter)
Quick Answer
OTC trading is direct cryptocurrency exchange between parties without a public order book, used by off-ramp providers to convert large volumes for merchant settlement.
Full Definition
OTC trading is the direct exchange of cryptocurrency between two parties without using a public exchange order book. OTC desks handle large-volume trades (typically $100K+) with minimal market impact and negotiated pricing. In payment infrastructure, OTC desks are used by off-ramp providers to convert large volumes of received crypto into fiat for merchant settlement without moving the market price.
Related Terms
Off-Ramp
An off-ramp converts cryptocurrency into fiat currency. Same-day off-ramping is a key feature for merchant adoption of crypto payments.
On-Chain
On-chain refers to transactions recorded directly on a blockchain, publicly verifiable and immutable — providing a tamper-proof record of every payment.
On-Ramp
An on-ramp converts fiat currency into cryptocurrency, enabling users to fund wallets for purchases via bank transfers or credit cards.
Oracle
A blockchain oracle provides external real-world data (like exchange rates) to smart contracts, critical for accurate crypto-to-fiat conversion in payment processing.