What is an OTC desk? Meaning and how it works
An OTC desk is a dealer that trades crypto with you directly instead of through an exchange. "Over the counter" means the deal is struck between two parties at one agreed price, not matched on a public order book.
What does "over the counter" mean?
Over-the-counter describes any trade made directly between two parties rather than on a central venue. The price comes from a private negotiation, not from a public queue of bids and offers, which is the exchange order book model.
Who works inside an OTC desk?
A crypto OTC desk combines four functions. Dealing sets the quote, risk and hedging manage the position the trade creates, compliance clears the client and the payment, and settlement and treasury move the coin and the cash.
Does the desk trade as principal or as agent?
Under principal execution the desk is your counterparty and quotes one firm price. Under agent execution it works your order in the market and passes on the fills. IWGT holds the Broker-Dealer activity on its VARA licence, shown in the licence section.
How does an RFQ differ from an order book?
On an order book you place an order and it fills in pieces at several prices. A request for quote (RFQ) runs in order:
- You state side, asset and size.
- The desk returns one firm price, held for a set window.
- You accept, or the quote lapses.
- The desk hedges its own position and settles.
How does a desk earn?
The desk earns the spread, the gap between its reference price and the price it quotes you. IWGT publishes the bands, 0.08% to 0.40% by ticket size, in the pricing section.
Illustrative example
A client buys 500,000 USDT, which sits in the 0.25% buying band (as of October 2026). At the 3.6725 peg the coin is worth 500,000 × 3.6725 = AED 1,836,250. The spread is 0.25%, or AED 4,591, so the client pays AED 1,840,841 by bank transfer. The full route is in buying USDT by bank wire, and a live price comes from a desk quote.
FAQ
Does over-the-counter mean the trade is unregulated?
No. Over-the-counter describes where the price is set, not whether rules apply. In Dubai, a desk dealing in virtual assets needs a VARA licence, and its status can be checked in VARA's public register.
Can I negotiate the price with an OTC desk?
The quote reflects the published spread band for your size and the reference price at that moment. You can request a quote, accept it or let it lapse. Larger tickets price inside the bands.
Trade through a licensed OTC desk
IWGT is a VARA-licensed Broker-Dealer in Dubai (VL/24/12/002). All-in spread 0.08–0.40% by size, published openly. AED by UAEFTS the same business day once your account is approved.
SOURCES
- VARA public register — licensed activities and status, accessed 21 October 2026.
- Central Bank of the UAE — exchange rate table, US dollar 3.6725 AED, June 2024 edition, accessed 21 October 2026.
- IWGT published pricing bands, October 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 October 2026 — re-check the sources before acting. Virtual assets may lose their value in full or in part and are subject to extreme volatility.