The Rise of Crypto Assets OTC Platforms and the Leading Position of Galaxy Digital

In recent years, the development of Crypto Assets over-the-counter ( OTC ) platforms has shown explosive growth. In 2024, the approval of Bitcoin and Ethereum ETFs, along with the regulatory frameworks introduced in regions such as the EU and Dubai, paved the way for the legitimate large-scale operation of OTC platforms. By early 2025, with Bitcoin hitting new highs and Ethereum surging strongly, the institutional asset allocation frenzy drove the trading volume of OTC platforms to show explosive growth.

OTC trading, as a model that directly matches buyers and sellers, is characterized by no slippage and no bidding. Transfers are completed through custodial wallets or institutional accounts. Since orders do not enter the public market, traders' intentions remain confidential. Although OTC institutions do not disclose specific transaction details of users, we can still trace some clues through on-chain data.

In July 2025, an unprecedented scale of Bitcoin over-the-counter trading caught the market's attention. Approximately 80,000 BTC changed hands for $9 billion, while the public market remained almost unperturbed. The orchestrator of this trade is Galaxy Digital, a cryptocurrency over-the-counter trading institution currently favored by Wall Street, which also led to an astonishing 268-fold year-on-year increase in its second quarter financial report revenue.

With the surge of institutional interest, OTC platforms have become the "third major liquidity pillar" in the crypto market, following centralized trading platforms (CEX) and decentralized trading platforms (DEX). For large amounts of capital, CEX/DEX are difficult to directly handle trades in the hundreds of millions without causing significant volatility, thus OTC platforms play the "white glove" role for institutions, completing positions or liquidations behind the scenes.

The OTC trading volume for the entire year of 2024 was higher than the same period last year, indicating that market participants are increasingly inclined to trade through private channels. The encryption industry is gradually shifting from marginal speculation to an acceptable asset allocation option in the eyes of institutional investors. In the first half of 2025, the OTC spot trading volume saw a year-on-year increase of 112.6% compared to the same period last year.

It is worth noting that the Asian OTC market is also thriving. Licensed OTC platform OSL in Hong Kong and emerging platforms in the UAE and Southeast Asia are attracting large global liquidity. At the same time, some traditional block trading market makers such as Flow Traders are also actively participating, using high-frequency and quantitative strategies to provide bilateral quotes for institutional clients for large-scale Crypto Assets transactions.

Among the many OTC platforms, Galaxy Digital, founded by Mike Novogratz, is undoubtedly a leader in this wave of institutional buying frenzy. Galaxy is not only a well-known Crypto Assets investment bank, but also operates a highly accessible OTC trading business, covering multiple business lines such as trading, investment, asset management, consulting, and mining. Its clients include publicly listed companies and top players like hedge funds, while OTC spot trading and investment are its main profit pillars.

Galaxy Digital announced an astonishing transaction on July 25: it acted as an agent to sell 80,000 bitcoins for an early investor from the "Satoshi era", with a total value of up to $9 billion. This transaction is believed to be part of the investor's estate planning. Surprisingly, such a large-scale transaction had almost no impact on the market, fully demonstrating the advantages of OTC platforms in absorbing large orders.

Apart from Bitcoin, Ethereum has also become a favorite among institutional investors. In the second quarter of 2025, several unusually large ETH buy orders appeared on-chain. Since July 9, 14 new wallet addresses have cumulatively purchased 856,554 ETH through OTC platforms like Galaxy Digital, worth approximately $3.16 billion. Among them, SharpLink Gaming has performed particularly well, having accumulated about 449,000 ETH by the end of July and continued to increase its holdings in early August, with total holdings exceeding 499,000 ETH.

Not only BTC and ETH, but BNB has also begun to enter the sights of institutional布局. In July, the US Nasdaq-listed company CEA Industries (stock code VAPE) announced its transformation into "BNB Treasury Company" and plans to raise up to $1.25 billion to purchase BNB. It is noteworthy that the mastermind behind this plan is David Namdar, co-founder of Galaxy Digital.

As the various industries within the Crypto Assets field move towards compliance, resources are also gathering towards leading institutions. OTC platforms, as a "transparent dark pool," may occupy a more important ecological position in the future. Whether it is the integrated platform featuring custody, trading, and on-chain ecology that Coinbase specializes in, or comprehensive service providers like Galaxy Digital that combine consulting and OTC trading, or the rapid integration of traditional brokerage firms and trading platforms, all indicate that the era of compliant institutions is about to arrive.