The crypto exchange KuCoin and DigitalBits have formed a partnership in order to launch a new type of over-the-counter (OTC) desk.
KuCoin says the Enterprise Currency Desk (ECD) is created for companies that want to work with decentralized finance (DeFi) and blockchain technology in order to provide digital asset acquisition solutions.
The first partner is DigitalBits, a platform where companies can deploy branded stablecoins in lieu of consumer brand loyalty reward systems. It provides companies access to more tokens, allowing them to power their operations like wallet authentications, staking and transaction fees.
Here’s what a KuCoin press release for Wednesday reads:
“A designated service to address token procurement and liquidity will allow companies to easily engage in blockchain-based solutions, without having to employ experienced traders to obtain and utilize large amounts of tokens.”
DigitalBits: Intermediary for Provisioning Tokens
As reported by the Digital Bits’ vice president of operations – Michael Luckhoo – DigitalBits will be an intermediary, provisioning tokens for certain functions of businesses.
Luckhoo also mentioned that leveraging a partner in the ecosystem will be helpful for companies aiming to intake token requirements, instead of trying to obtain the same thing from each and every project taken separately.
The ECD Solution Will Cater to Enterprise Clients
The ECD solution is a traditional OTC one, only optimized and catering specifically to enterprise clients. KuCoin wants to allow its platform to serve as
“A designated service, addressing token procurement and liquidity allowing companies to easily engage in blockchain-based solutions, without having to employ experienced traders to obtain and utilize large amounts of tokens.”
KuCoin’s Daily Trade Volume Increased Since 2018
According to previous reports, the Seychelles-based crypto exchange KuCoin raised $20 million in a Series A funding backed by Neo Global Capital, Matrix Partners and IDG Capital back in 2018.
Since then, it reached $33.5 million in daily trade volume. The company said that its new service is going to reduce the friction businesses usually experience when trying to launch branded tokens or to obtain large amounts of stablecoins.