Switcheo, a Singapore-based decentralized exchange running on the NEO and Ethereum blockchains, has announced Switcheo OTC, an upcoming trustless over-the-counter (OTC) trading service. The non-custodial service will handle crypto-to-crypto trades, and its public beta is scheduled for launch on March 4th, 2019.
According to Switcheo, the OTC service is designed to “securely execute peer-to-peer trades of digital tokens that Switcheo cannot form a market for.” Switcheo’s OTC service uses the existing Switcheo smart contracts on the NEO and Ethereum blockchains to facilitate trustless trading. Switcheo claims that escrow and counter-party risk is eliminated because trades are settled by its smart contract.
Switcheo plans to launch its service with a limited selection of tokens, and without support for cross-chain trading. Switcheo’s upcoming NEO V3 smart contract aims to support “all compatible ERC-20 and NEP-5 tokens,” including those not listed on Switcheo’s exchange. Cross-chain support is planned for a later stage, after the implementation of atomic swaps.
Switcheo plans to offer a zero-fee trading promotion for the first month of OTC operations, and discounted trades when using SWTH tokens afterward.
In the interim, Switcheo is also offering an OTC trading desk designed to handle large orders (a minimum of US$5,000). Since the OTC desk uses a human escrow service, cross-chain trading and unsupported tokens are currently available to its market makers. Interested parties should contact Switcheo directly for more information.
Switcheo’s full OTC trading announcement can be read at the following link: