Binance, the world's largest cryptocurrency exchange, has reported a dramatic surge in over-the-counter (OTC) trading volume in the first two months of 2026, signaling a significant shift in institutional crypto buying behavior. According to data from the exchange's March OTC digest, the platform processed a volume equivalent to 25% of its entire 2025 OTC total in just January and February of 2026. This sharp increase underscores growing confidence among large-scale investors.
The composition of this OTC activity reveals a major pivot towards Bitcoin and stablecoins. Bitcoin's share of OTC volumes on Binance skyrocketed from 4.91% in January to 45.81% in February, a nearly ten-fold increase that re-established BTC as the dominant currency for high-volume institutional transactions. Concurrently, stablecoin and fiat-to-crypto inflows more than doubled, rising from 21.43% to 48.95% of volume, highlighting the critical role of assets like USDT and USDC in facilitating large, efficient transfers between traditional finance and crypto markets.
Binance co-CEO Richard Teng confirmed the milestone on social media platform X. The exchange highlighted the execution of complex, high-value trades, such as a $105 million WBETH to ETH conversion completed within two hours with minimal slippage, demonstrating the desk's deep liquidity and efficiency.
This OTC boom contrasts with a broader downturn in public spot markets. In February 2026, combined trading volumes across centralized exchanges fell to $5.61 trillion, with spot volume dipping 3% to $1.5 trillion. Binance's own spot market share reportedly shrank to 22%, its lowest since 2020. The divergence suggests institutional and high-net-worth investors are increasingly routing large orders through private OTC channels for security, privacy, and better execution, while retail activity remains subdued.
Binance attributes this "risk reboot" to easing global policies and regulatory improvements, which are boosting institutional confidence. Beyond Bitcoin, the OTC desk also noted active trading in altcoins including SOL, APT, EGLD, MCH, RENDER, and TRX, indicating a trend of portfolio diversification among professional investors.
