Binance launches private IOI feature for large spot and loan orders via OTC desk

Binance has launched a private indication of interest (IOI) feature for large spot and loan orders, saying it is the first crypto exchange to bring a traditional finance IOI system to digital assets to help institutions execute sizable trades without potentially moving the market.

An IOI lets traders privately signal interest in buying, selling, borrowing, or lending a large amount of crypto without placing an order or revealing their intent on the public order book. Common in traditional financial markets, IOIs help institutions gauge liquidity and negotiate terms without triggering the price swings that often accompany large transactions.

“The crypto market today is maturing rapidly, with an increasing influx of institutional participants engaging in large and complex transactions,” a Binance spokesperson told The Block. “However, executing large orders on public order books often results in price slippage, widened spreads, and market disruption — challenges well-known in traditional financial markets.”

Launching IOI through Binance’s over-the-counter (OTC) and execution services desk is meant to close a long-standing gap in crypto trading infrastructure, the spokesperson said, aligning crypto workflows with traditional finance while giving institutions better liquidity discovery and counterparty matching in a private setting.

Binance’s new IOI feature

The feature is available to “verified” institutional clients and high-net-worth users who typically transact at minimum sizes of around $200,000. Binance noted that mid- and small-cap tokens still trade with relatively thin liquidity, meaning even a single large order can move markets materially. Keeping indications private and routing potential matches through the OTC desk is intended to reduce that impact.

“IOIs submitted through Binance’s OTC & Execution Services are private and non-binding,” the spokesperson said. “They serve as discreet signals of interest and are not displayed on public order books. This privacy protects sensitive trading intentions and helps prevent market disruption, ensuring that IOIs are only visible to potential participants engaged by the OTC desk.”

After a user submits an IOI specifying asset, size, and trade or loan parameters, the OTC desk searches privately for counterparties. If a match is found, Binance contacts the user to confirm and finalize terms. IOIs do not obligate users to transact, and once terms are agreed, spot trades settle directly to a user’s Binance spot account, while fixed-rate loans settle according to the agreed schedule.

Submitting an IOI carries no fees; Binance only generates revenue when a trade or loan is executed, via an embedded OTC spread in the final quote, the spokesperson said, adding that this structure “aligns incentives” by offering flexibility without upfront costs.

IOIs can currently be submitted via email or direct contact with the OTC desk, with API support planned for the future.

The IOI system sits alongside Binance’s existing request-for-quote (RFQ) feature, where traders receive firm prices from multiple liquidity providers. RFQ is also non-binding, the spokesperson said, but quotes typically expire within seconds or minutes. IOIs, by contrast, are intended for more non-standard requests — including large blocks or longer-dated fixed-rate loans and allow institutions to explore liquidity privately without revealing size or direction, the spokesperson noted. 

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