In our second post in the Haruko Synthetic Accounts series, we look at how our OTC and Loan Booking tools helps crypto OTC market-makers and lending desks manage their risks and challenges.
Despite an impressive growth, the digital asset markets are still only a small fraction of the size ($1tn) of other capital markets ($100tn+ for global equities). The increased institutional participation trend, akin to the equity asset class evolution we’ve seen since the 1940s, will close this gap, but for now digital asset liquidity remains a challenge.
Large institutional capital allocators are often faced with inadequate and fragmented market liquidity, particularly for the long-tail altcoin assets that often have the biggest return upside. This impedes efficient capital allocation and increases liquidity risk premiums.
We believe that well-funded OTC market-makers and lending desks are best placed to solve the liquidity gap whilst the digital asset market matures with time. The added advantage of liquidity, confidentially and security will enable greater institutional participation. However, OTC and loan booking management in fast-paced digital asset market creates new risks and challenges.
This is why with a Haruko’s synthetic account’s OTC capabilities, you now have the flexibility to book and aggregate your custom OTC trades and digital asset loans all in one place:
✔️ OTC booking of trades, transfers or balance adjustments for custom instruments, including options.
✔️ Loan booking and management dashboard to allow native booking of both internal and external credit agreements.
✔️ Adjust interest rates, repayment schedules, payment currency, collateral and much more to get it as detailed as you need it.
✔️ Automated interest accruals and risk reporting feed-through.
✔️ Support for inter-strategy booking where entries are linked by a common booking ID.
✔️ Counterparty management dashboard and activity tagging.
Looking at reliable institutional-grade digital asset OTC and lending solutions? 🤔
Reach out to our expert team today to see how Haruko's flexible OTC booking and advanced loan management tools can help you: https://bit.ly/3UrvheB 👋
Read our first post in Synthetic Accounts series:https://lnkd.in/eJ8Y5ZZf