The cryptocurrency landscape continues to evolve, driven by innovation, strategic investments, and the growing demand for compliant, efficient trading infrastructure. In a significant move that underscores the importance of over-the-counter (OTC) markets in the digital asset ecosystem, Binance Labs, the venture arm and incubator of global crypto exchange Binance, has announced a $3 million investment in Koi Trading, a U.S.-based OTC trading platform headquartered in San Francisco.
This strategic funding highlights Binance’s ongoing commitment to strengthening the foundational layers of the blockchain economy—particularly in regions with stringent regulatory frameworks. The investment not only validates Koi Trading’s business model but also signals growing institutional confidence in compliant, high-liquidity crypto trading solutions.
Bridging Fiat and Crypto with Compliance at the Core
Koi Trading was founded by seasoned veterans from the blockchain and financial sectors, including former core team members of HBUS, a prominent U.S.-based digital asset trading platform. With deep expertise in trading, compliance, quantitative research, and data science, the team is uniquely positioned to address one of the industry’s most pressing challenges: secure and efficient fiat-to-crypto onramps.
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At the heart of Koi Trading’s mission is the goal of becoming a regulated bridge between traditional finance and the decentralized world of cryptocurrencies. By offering a compliant OTC trading channel, Koi reduces counterparty risk, enhances transaction privacy, and provides deep liquidity for institutional clients and high-net-worth individuals.
Ella Zhang, Head of Binance Labs, emphasized this alignment:
“Koi Trading’s vision of enabling seamless, regulated conversion between fiat and crypto aligns perfectly with Binance’s long-term goal of building global financial infrastructure that empowers free value exchange.”
Addressing Market Gaps in North America, Asia, and the EU
Despite the bearish market conditions prevalent in late 2018 when the investment was announced, demand for OTC services remained resilient—especially among institutional players seeking to avoid slippage and maintain privacy during large-volume trades.
Koi Trading aims to expand its footprint across North America, Asia, and the European Union, targeting markets where trust, regulatory clarity, and liquidity are paramount. While exchanges dominate retail trading, OTC desks serve as critical infrastructure for whales, hedge funds, mining operations, and blockchain startups moving substantial amounts of digital assets.
Hao Chen, CEO and co-founder of Koi Trading, noted:
“Our traders and sales teams bring years of experience in both traditional finance and crypto markets. We’re building a globally trusted brand that institutions can rely on—for speed, security, and settlement certainty.”
Tackling Trust Deficits in Key Markets Like China
One of the most persistent challenges in the OTC space has been establishing trust—particularly in regions like China, where domestic cryptocurrency trading is restricted. Despite these limitations, daily OTC volumes in China have historically exceeded 150 million RMB, largely facilitated through informal channels such as WeChat groups.
These peer-to-peer arrangements lack transparency, expose users to fraud, and offer no legal recourse. Without regulated custodians or verified counterparties, Chinese traders face significant risks when executing large trades.
Koi Trading seeks to address this information asymmetry and trust deficit by leveraging:
- A robust Anti-Money Laundering (AML) program
- Strong banking relationships across the U.S. financial system
- Institutional-grade security protocols
- Verified counterparties with auditable track records
By combining regulatory compliance with deep market-making capabilities, Koi aims to increase trade settlement rates and reduce failed transactions—a common pain point in unregulated OTC environments.
Global Operations with Local Presence
Headquartered in San Francisco, Koi Trading operates regional offices in Hong Kong and Beijing, enabling it to serve clients across time zones while navigating local regulatory nuances. Its client base includes global brokers, hedge funds, cryptocurrency miners, exchanges, and blockchain projects—all requiring reliable access to liquidity without market disruption.
The platform’s success hinges on three core pillars:
- Compliance-first approach – Ensuring all operations adhere to KYC/AML standards and local regulations.
- High-touch service model – Offering personalized support and rapid execution tailored to institutional needs.
- Deep liquidity pools – Aggregating order flow from multiple sources to ensure competitive pricing and fast settlement.
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Why This Investment Matters for the Broader Ecosystem
Binance Labs’ backing of Koi Trading is more than just financial support—it represents a strategic bet on the future of regulated institutional crypto trading. As the industry matures, infrastructure providers that combine compliance with performance will become increasingly valuable.
This investment also reflects a broader trend: major players are no longer focusing solely on exchanges or consumer apps. Instead, they’re funding the "plumbing" of crypto—custody solutions, prime brokers, data analytics firms, and OTC desks—that enable sustainable growth.
For users and institutions alike, platforms like Koi Trading represent a safer, more professional alternative to shadowy P2P deals or offshore exchanges with questionable oversight.
Core Keywords:
- OTC crypto trading
- Binance Labs investment
- cryptocurrency liquidity
- compliant crypto platform
- fiat-to-crypto bridge
- institutional crypto trading
- Koi Trading
- blockchain infrastructure
Frequently Asked Questions (FAQ)
Q: What is OTC crypto trading?
A: Over-the-counter (OTC) crypto trading refers to private transactions between two parties without using a public exchange. It's commonly used for large trades to avoid price slippage and maintain privacy.
Q: Why did Binance Labs invest in Koi Trading?
A: Binance Labs supports projects that build critical blockchain infrastructure. Koi Trading aligns with Binance’s vision by offering a compliant, high-liquidity bridge between fiat and crypto markets.
Q: Is Koi Trading available to retail investors?
A: Primarily focused on institutions and high-net-worth individuals, Koi Trading caters to clients executing large-volume trades rather than retail users.
Q: How does Koi Trading ensure compliance?
A: The platform implements strict KYC/AML procedures, maintains U.S. banking relationships, and adheres to regulatory requirements across jurisdictions where it operates.
Q: Where is Koi Trading headquartered?
A: The company is based in San Francisco, California, with additional offices in Hong Kong and Beijing.
Q: Can I use Koi Trading if I’m based in China?
A: While China restricts domestic crypto exchanges, OTC trading persists through informal channels. Koi offers a compliant alternative for qualified international clients, including those from Greater China operating under permissible frameworks.
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As the digital asset economy matures, the line between traditional finance and decentralized systems continues to blur. Investments like Binance Labs’ support of Koi Trading underscore the importance of trustworthy intermediaries that can navigate regulation without sacrificing efficiency. For institutions seeking reliable access to crypto markets, platforms combining compliance, liquidity, and global reach will define the future of value exchange.