What is a block trade? Pricing size away from the order book
A block trade is a large USDT or BTC order that a client and an OTC desk price privately at one agreed all-in rate, instead of placing it on a public exchange order book. The desk quotes the whole size through an RFQ, so the trade settles as one number with no partial fills.
What is a block trade in crypto OTC trading?
A block trade is a single large purchase or sale of USDT, BTC or another virtual asset, agreed bilaterally between a client and an OTC desk at one price for the full amount. The client sends a request for quote (RFQ) naming the asset and size; the desk answers with one all-in rate built from its own inventory and hedging. Once accepted, the whole block settles at that rate.
Why size is priced away from the order book
A public order book holds a limited quantity at each price level. A market order larger than the best level fills at the next level, then the next, so the average worsens as the order grows — the cost known as slippage. A block trade moves that market-impact risk from the client to the desk, which charges a spread for carrying it. IWGT's published spread bands run from 0.08% to 0.40% by ticket size, as of September 2026.
In Dubai a block trade is still a regulated virtual-asset service: the desk pricing it needs a VARA licence — IWGT's VL/24/12/002 is listed in the licence section and in VARA's public register — and fiat settles only to an account in the client's own name. The practical steps are in the how-to on selling USDT in large amounts.
Illustrative example
A company treasury asks for a quote on 1,000,000 USDT into AED. Sent to an exchange as one market order, the sale would walk down several price levels and fill at a blended rate. As a block, the desk returns one rate for the full amount. The treasury accepts, delivers the USDT, and receives a single AED payment by UAEFTS the same business day. The size is illustrative, not a live quote.
Related terms
- Liquidity — the depth that lets a desk absorb size the book cannot.
- Mid-price — the reference a block quote is built around.
FAQ
Is a block trade the same as an RFQ?
Not exactly. An RFQ is the request-and-quote process; a block trade is the large, privately negotiated trade that RFQ pricing usually produces. Every block trade at an OTC desk goes through an RFQ, but not every RFQ is block-sized.
Does a block trade get a better price than the exchange order book?
Not automatically. A block trade avoids the market impact of walking down the order book, but the client is trusting one desk's price instead of the visible book. Whether it nets more depends on the size, the spread and the exchange's depth that day.
How large does a trade need to be to count as a block?
There is no fixed public threshold. A trade counts as a block once it is large enough to move the visible market if placed directly. IWGT's flow starts from around 100,000 USDT.
Get one price for your full block
IWGT is a VARA-licensed Broker-Dealer in Dubai (VL/24/12/002). Send an RFQ for your size and receive one all-in price for the full amount, with no partial fills — spread 0.08–0.40%, AED settled the same business day.
SOURCES
- VARA public register — licence status check, accessed 21 September 2026.
- VARA rulebooks — Broker-Dealer activity and client-asset rules for licensed virtual-asset service providers, accessed 21 September 2026.
- IWGT published pricing bands and onboarding requirements, September 2026.
This guide is informational and is not legal, tax or investment advice, nor an invitation to buy or sell any virtual asset. Rules and figures are as of September 2026 — re-check the sources before acting. Virtual assets may lose their value in full or in part and are subject to extreme volatility.