“OTC" stands for Over-the-Counter. In the context of finance and trading, OTC refers to the decentralized market where financial instruments such as stocks, bonds, commodities, and cryptocurrencies are traded directly between two parties, outside of a formal exchange.

Unlike traditional exchanges where trading occurs on a centralized platform with standardized rules and regulations, OTC trading allows for more flexibility and customization in terms of pricing and transaction terms. In the case of cryptocurrencies, OTC trading involves the buying and selling of digital assets directly between buyers and sellers, often in large volumes and at negotiated prices.

OTC desks or brokers facilitate these transactions, matching buyers with sellers and providing liquidity to the market. OTC trading is particularly popular among institutional investors and high-net-worth individuals who require large transactions or prefer to trade outside of public exchanges due to factors such as privacy, liquidity, or regulatory considerations.