OTC (Over-the-Counter)

Full Definition

OTC (Over-the-Counter) trading refers to the buying and selling of securities directly between two parties, outside of formal exchange venues. Unlike exchange-traded securities where orders are matched through a central order book, OTC trades are negotiated bilaterally, often with the help of dealers or brokers.

OTC markets are common for bonds, derivatives, and private securities that don't meet exchange listing requirements or prefer more flexible trading arrangements.

Why It Matters

On Sails.to, secondary trading combines the benefits of OTC flexibility with blockchain transparency. Token holders can trade peer-to-peer on Solana with atomic settlement, while larger institutional trades can be facilitated through regulated MTF venues.

The on-chain settlement layer eliminates traditional OTC risks like counterparty default and settlement delays—trades either complete fully and instantly, or they don't happen at all.

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