What OTC trading is
Over-the-counter means the trade happens directly between you and a desk, at one agreed price, instead of through a public order book. On an exchange, a $300,000 CAD bitcoin buy is filled against dozens of small sell orders at progressively worse prices — that slippage is a hidden cost, often 0.5–2% on thin Canadian pairs. A desk quotes one all-in price for the whole ticket, sources liquidity across several venues and settles privately, so your order never moves the market.
OTC is not for every trade. Below roughly $100,000 CAD the platform route is cheaper and faster; above it, the desk spread is normally less than the slippage you would otherwise pay — and you get a person to call.
Who uses OTC desks in Canada
Businesses converting treasury into bitcoin or stablecoins; corporate buyers paying overseas suppliers in USDC; family offices and high-net-worth individuals making a first large allocation; miners and Web3 companies selling coins for CAD payroll; other MSBs sourcing inventory. What they share is size, a need for a firm price before committing, and an accountant who wants one clean confirmation rather than 400 fills.
How a trade works, step by step
- Onboard once. Business: incorporation documents, beneficial owners, a director's ID, expected volumes. Individual: government ID, address, source of funds above $100,000 CAD. Usually 1–2 business days.
- Request a quote. Asset, side and approximate size. You get a firm two-way price against a named reference mid, valid for a short window — typically 60–120 seconds.
- Accept. Say yes inside the window and the price is locked. The desk confirms in writing: asset, quantity, price, total CAD, settlement details.
- Settle. Buying: send CAD by wire or Interac e-Transfer; coins go to your wallet the same day once funds clear. Selling: send coins; CAD arrives by wire, EFT or Interac e-Transfer the same business day for requests before 12:00 PT.
- Reconcile. One trade confirmation with the CAD value at execution — what your bookkeeper needs for the CRA record.
How OTC pricing works
A desk earns a spread: the gap between the quoted price and the reference mid at that moment. Good desks name the mid — an index or volume-weighted price across major venues — and quote a single number with nothing added afterwards: no trading fee, no network-cost line, no withdrawal charge. Spreads tighten with size and liquidity; BTC and stablecoins are tightest, smaller altcoins wider. Ask for the mid, the spread and the validity window in one message. A desk that gives only a price is hiding one of the three.
Risks and how to manage them
Counterparty risk — prefer a desk that never holds your coins after the trade and settles delivery-versus-payment. Settlement risk — confirm the receiving address or bank account in writing before you accept, never in the same message as the quote. Regulatory risk — verify FINTRAC (and Revenu Québec) registration in the public registers; an unregistered desk leaves you no recourse. Price risk — a firm quote fixes price at acceptance; do not accept an indicative one on a volatile day.
How the TokenNest desk works
Minimum $100,000 CAD per ticket, in BTC, ETH, USDC, USDT, EURC and the other assets we list. Firm two-way quotes against a stated mid, one spread, no added fees. Non-custodial: purchases settle to your wallet, sales to your bank, the same business day before 12:00 PT. CAD by wire, EFT or Interac e-Transfer; USD by wire. Desk hours 9:00–17:00 PT with a named contact. Registered with FINTRAC and licensed by Revenu Québec. Request a quote →
Common questions
It varies by desk, from $25,000 CAD to $1M CAD. The TokenNest minimum is $100,000 CAD per ticket; below that, the platform gives you a better price than any desk can.
Quote to acceptance: under two minutes. Settlement: the same business day at TokenNest for funds received before 12:00 PT — coins to your wallet or CAD to your account. First-time onboarding adds one to two business days.
Above about $100,000 CAD, usually yes: the spread is smaller than the slippage a large order causes on Canadian books. Below that size, the platform is cheaper. Compare the all-in price on both, not the headline fee.