The Peer-to-Peer cryptocurrency exchange, Hodl Hodl has launched a Bitcoin trading desk which is considered to be the world’s first Over-The-Counter (OTC) and non-custodial trading desk. This is in partnership with Tenbagger, a virtual currency exchange that has been officially approved by the Estonia Government.
On August, 2, the exchange publicized its Roadmap via a tweet. Outlined in the roadmap, was the launching of new services that will grant the request made by institutional brokers and large volume traders. One of such is a non-custodial escrow service that will provide seamless trading and have a high level of security.
Finally, on November, two an announcement was made on Medium by Hodl Hodl stating that it had launched the expected non-custodial escrow services. This is a service that will enable users to trade Bitcoins and Litecoin at the most competitive prices. Also, a unique multisig escrow account will be created for traders using Bitcoin’s blockchain to ensure transparency and security.
While this Escrow service is like several others that enable private and large volume traders to transact among themselves using Bitcoin’s blockchain, Hodl Hodl is unique because its mode of operation differs. For starters, it does not hold down the funds that are to be transacted in a central wallet which as a result, reduces potential risks that would’ve occurred.
This exchange which automatically pair buyers with sellers, believes that the methods used by other escrow services are not safe. This was attributed to the fact that transactions are not done through a non-custodial multisig escrow which would’ve greatly minimized the loss of funds.
The P2P cryptocurrency exchange stated that;
Currently, most OTC firms/brokers use their own centralized escrow services to trade with customers. We believe that this isn’t safe, and large trades should be executed via non-custodial multisig escrow.
Tenbagger on the other hand, which is in partnership with Hodl Hodl exchange to provide this service, operates like any other escrow service. In comparison with the latter, it does not hold the seller’s funds until an agreement has been reached between the buyer and the seller. As a consequence, loss or theft of crypto assets can be minimized, and transactions can be done faster.
Now, unlike Hodl Hodl where only Bitcoin and Litecoin can be traded for dollars, pounds, and other currencies, the escrow services of Tenbagger also allow other cryptocurrencies to be traded on its exchange. Therefore, the crypto assets that can be bought or sold on Tenbagger include Ethereum, Monero, Zcash, Bitcoin Cash, Litecoin, and NEO.