Binance has announced the launch of an Indication of Interest (IOI) tool for its over-the-counter (OTC) and Execution Services, aimed at VIP and institutional users. This new feature introduces spot and loan IOI functions alongside a related rewards promotion.
According to Binance, the IOI tool is designed as a private, non-binding method for VIP and institutional users to assess interest and potential liquidity without revealing their intentions to the broader market. The tool comprises Spot IOI, which communicates buy/sell interest at a targeted price level to the OTC desk for counterparty matching, and Loan IOI, allowing borrowers or lenders to propose custom terms for matched bilateral loans. The workflow includes a blotter for monitoring open and completed IOIs.
The launch promotion offers rewards tied to matched Loan IOI borrowing activity. Eligibility requires VIP registration via an application form, use of Loan IOI, and successful matching of borrowing orders with terms exceeding 30 days. Reward tiers are based on matched loan volume: $10 million earns a $5,000 trading fee rebate voucher plus an anniversary limited-edition set; $2 million earns either a $1,000 rebate voucher or the limited-edition set; and $500K earns a $200 rebate voucher. Binance also indicates it may substitute token vouchers of equivalent value if delivery is not feasible.
External market data highlights why private liquidity discovery tools are prevalent for large off-venue transactions. The Bank for International Settlements (BIS) reported that global over-the-counter foreign exchange trading reached $7.5 trillion per day in April 2022 on a “net-net” basis. In that survey, FX swaps accounted for 51% of global turnover, underscoring how significant activity can concentrate in instruments where discreet signaling is operationally valuable.
Binance is a global cryptocurrency exchange founded in 2017 by Changpeng Zhao and Yi He. It offers a wide range of services including spot and derivatives trading tailored to VIP and institutional participants. Binance operates without a single officially declared headquarters location due to its historically distributed footprint across jurisdictions.
