Cryptocurrency exchange Gemini launches regulated custody service
|- Gemini Custody subdivision will operate under a NY license for custody digital assets.
- Initially, the offering supports 18 coins and tokens.
A US-based cryptocurrency exchange Gemini foundered by Winklevoss brothers announced a launch of a dedicated subdivision Gemini Custody service. Initially, the new service will support 18 largest digital assets including Bitcoin, Bitcoin Cash, Ether, Litecoin, Zcash. However, the exchange plans to expand its custody offering to include more coins within the nearest future.
Gemini Custody will comply with all regulatory requirements applied to traditional financial institutions.
“Gemini is a fiduciary and qualified custodian under New York Banking Law and is licensed by the State of New York to custody digital assets. Gemini Custody is regularly audited and subject to the same capital reserve requirements and compliance standards as the world’s top financial institutions,” according to the information presented on the official website.
This move reflects a growing demand for custody services in cryptocurrency domain, especially for slammer tokens and altcoins that are traditionally regarded as riskier than leading cryptocurrencies.
“The maturation of crypto as an asset class depends heavily on the safety and soundness of the custodians that hold individual and institutional funds,” Tyler Winklevoss, CEO of Gemini commented.
The company aims to break the barriers that prevent large financial institutions and asset managers to get involved in crypto sphere. Apart from that, the solution helps to minimize the risk of loss due to theft or operational errors. Thus Gemini Custody offers “hardware security modules (HSMs), multi-signature technology, and geographically distributed, access-controlled facilities” as a part of operational and risk-management solution.
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