Over-the-counter (OTC) crypto desks, with their unique positioning, can precisely address the long-standing challenges multinational companies face when operating in Africa. Below, we map each pain point to an OTC solution, supplemented with mini-scenario illustrations.
Foreign Exchange Volatility
Pain Point: Rapid fluctuations in local currency exchange rates, where large-scale bank settlements can erode profits.
OTC Solution: Settle with USD-pegged stablecoins (USDT/USDC) or major crypto assets to lock in exchange rates and hedge intraday FX risks in real time.
Scenario: A Nigerian importer signs a 30-day USDT contract with an OTC desk to pay an East Asian supplier, successfully avoiding a mid-month NGN/USD rate spike.
Complex Cross-Border Payments
Pain Point: Multi-step correspondent bank transfers cause delays, fees, and operational complexity.
OTC Solution: Convert local currency to stablecoins on one end, transfer instantly on-chain, and directly exchange into the recipient’s fiat on the other end—all in a single transaction.
Scenario: A Ghanaian NGO uses Quidax’s OTC desk to disburse USDT funding to a Kenyan partner, who converts it to KES within minutes.
Exchange Slippage
Pain Point: Large orders disrupt the market, causing slippage and hidden costs.
OTC Solution: Desks execute bulk trades at pre-agreed prices using proprietary liquidity or bilateral matching, minimizing market impact.
Scenario: An African fintech firm purchases 5 BTC via OTC at a fixed price, avoiding a 2% slippage loss.
Local Currency Regulation Compliance
Pain Point: Varying currency controls and AML/KYC requirements across countries make implementation cumbersome.
OTC Solution: Licensed OTC providers (e.g., Quidax) offer one-stop KYC/AML onboarding and tailor settlement paths based on local fiat channels and legal frameworks.
Scenario: A European exporter uses Quidax’s Nigerian OTC desk to complete SEC-VASP compliance, local beneficiary bank reporting, and the full process of EUR→NGN stablecoin→partner’s bank account in one go, with auditable records.
Supplier/Partner Payment Process Optimization
Pain Point: Manual forex purchases and multiple bank transfers tie up working capital and involve lengthy approval chains.
OTC Solution: Dedicated account managers negotiate terms, execute settlements, and automate recurring payments via APIs or scheduled calls.
Scenario: A pan-African agribusiness sets up weekly OTC swaps to convert USD cash positions into NGN stablecoins, paying multiple Lagos suppliers directly without repeated bank approvals.
Batch Payouts for Platform Users
Pain Point: High-frequency payout scenarios (e.g., gig economy, gaming platforms) face slow bank batch processing and high fees.
OTC Solution: Desks batch-execute stablecoin payouts or direct crypto transfers, reaching end-users in regions with weak banking infrastructure.
Scenario: A Nigerian digital platform uses OTC to instantly and cheaply distribute USDT to contest-winning players, who can withdraw to personal wallets immediately.
