Gemini Expands Institutional Offerings With OTC Clearing Service

Neil Dennis

Gemini, the cryptocurrency exchange and custodian service co-founded by Tyler and Cameron Winklevoss, announced the launch of Gemini Clearing, a trade settlement service for off-exchange and over-the-counter cryptocurrency transactions.

The new service provides regulated clearing and settlement for large, off-exchange trades that are negotiated bilaterally between counterparties or brokered via a third party.

Benefits

Gemini Clearing list five main benefits for using its service:

  • Clearing and Settlement - a trade settles immediately or within an approved window of time
  • Couterparty Risk - no funds are transferred until both parties of the trade are fully funded
  • Regulatory Compliance - each party is subject to robust know your client (KYC) and anti-money laundering (AML) screening
  • Privacy - trade details are known only to the counterparties involved
  • Non-Circumvention - Gemini does not have an over-the-counter desk

Institutional Moves

Gemini's clearing service is not the company's first move towards expanding its institutional offerings. Earlier this week, the company announced the introduction of sub-accounts for its institutional customers.

These sub-accounts allow financial institutions such as banks, fund managers and hedge funds to create and manage multiple accounts from a single master account so investors can segregate trading strategies, funds or groups of customers.

And last week Gemini joined Silvergate Bank's payments network to allow institutional customers to deposit and withdraw cash from their Gemini accounts instantly and at any time.