What is a market maker?
A market maker is a firm that stands ready to buy and sell an asset at quoted prices, earning the gap between the two. In crypto, makers supply the bids and asks you see on an exchange — including the USDT quotes a Dubai desk prices against.
KEY FACTS
| Definition | Firm quoting two-sided prices, earning the spread |
|---|---|
| What it earns | The bid-ask spread, not price direction |
| AED anchor | Dollar peg at 3.6725, held since 1997 |
| Regulator in Dubai | VARA (outside the DIFC) |
| IWGT spread | 0.08%–0.40% all-in, by ticket size |
Source: Central Bank of the UAE and IWGT published pricing bands, as of September 2026.
How a market maker works
A market maker quotes a bid and an ask, holds inventory, and earns the spread between the two rather than betting on direction. For USDT against the dirham the quotes cluster around a fixed anchor: the Central Bank of the UAE has held the dirham at 3.6725 per US dollar since 1997, and USDT tracks the dollar. Makers' quotes on global exchanges form the mid-price that any honest desk quote is measured against.
Market maker versus OTC desk
A maker streams continuous two-sided prices into an order book, in small clips, to anonymous takers. An OTC desk is a principal counterparty giving one named client one all-in price for the full ticket, in writing, settled by bank transfer. The desk sources liquidity from makers and internalises the execution risk, which is why it can publish a fixed band (0.08% to 0.40% by ticket size in the pricing section) while a maker cannot. See OTC desk vs exchange vs P2P.
Why it matters when selling USDT in the UAE
The price you get is built from market-maker quotes: on an exchange you sell into the makers' bids directly, and a large sell walks down the bid stack level by level; at a desk the makers' prices are already inside the single quote, so there is one price for the whole ticket and no partial fills.
Illustrative example
A 1,000,000 USDT sell into five exchange bid levels of 200,000 each, from 3.6720 down to 3.6690, averages 3.6707 and leaves AED 3,667,029 after a 0.10% taker fee. A desk quote at 0.08% off the 3.6725 peg gives 3.6696 all-in, AED 3,669,562, or AED 2,533 more, settled the same business day. Illustrative depth, as of September 2026, not a quote.
FAQ
Is a market maker the same as a broker?
No. A market maker trades from its own inventory as principal and earns the spread; a broker passes your order to someone else for a commission. An OTC desk also deals as principal, but quotes you one all-in price for your full size instead of a continuous two-sided stream.
Do market makers set the USDT price in Dubai?
No single maker sets it. The dirham has been pegged to the US dollar at 3.6725 since 1997 and USDT tracks the dollar, so makers compete around that anchor. Their competition is what keeps USDT/AED quotes sitting close to the peg.
Can an individual trade directly with a market maker?
Generally no. Market makers quote to exchanges and institutional counterparties, not to the public. An individual reaches the same liquidity through a broker, an exchange account or an OTC desk that deals as principal.
Is market making regulated in Dubai?
Virtual-asset activity in Dubai outside the DIFC falls under VARA, which licenses activities including Exchange and Broker-Dealer services. A firm quoting and dealing as principal operates inside that perimeter; check any counterparty in the VARA public register, as of September 2026.
Get one price for your full ticket
IWGT is a VARA-licensed Broker-Dealer in Dubai. All-in spread 0.08–0.40% by ticket size, published openly. AED by UAEFTS the same business day once your account is approved.
SOURCES
- VARA public register — licence status check, accessed 11 September 2026.
- Central Bank of the UAE — payment systems (UAEFTS), accessed 11 September 2026.
- IWGT published pricing bands, 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.