Tanya Abrosimova
Independent Analyst
- The company applied to FINRA for permission to trade tokenized securities.
- The process may take time due to the regulator's reluctance to approve broker-dealer operations for cryptocurrency companies.
The US-based cryptocurrency exchange owned by Winklevoss twins applied to the Financial Industry Regulatory Authority (FINRA) for a license of a broker-dealer. It will allow the company to operate as an alternative trading system and offer cryptocurrency securities on the blockchain.
Earlier, the exchange entered a partnership deal with the fintech startup Harbor that builds solutions for tokenizing real-world assets. The partnership will allow institutional investors buying securities for Gemini Dollar (GUSD), a proprietary stablecoin of Gemini exchange.
However, now the New-York-based company wants to trade the instruments from external platforms such as Harbor on its own trading platform, according to the knowledgeable sources cited by Coindesk.
However, the ambitious plans may take time to come to life as FINRA is reluctant to approve the applications for a broker-dealer license from cryptocurrency companies. Currently, about 40 such applications are waiting for the regulator's decision.
Read more about FINRA's backlog here
Meanwhile, Gemini obtained the permission of the New York Department of Financial Services (NYDFS) to provide custodial services for digital assets.
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