The New York-based crypto exchange, Gemini, which has decided to launch its own custody service, which of course will be called Gemini Custody.
Regulations may be one of the best known walls for cryptocurrency initiatives, however, compliance could be used to expand the horizons of any company. Recently, Gemini understood this concept to the letter and planned this release.
Founded in 2014 by Cameron and Tyler Winklevoss, the firm has announced the launch of the Gemini Trust Company which will act as a custodian regulated and supervised by the New York Department of Financial Services (NYDFS). This new service will allow crypto exchange customers to perform instant trading with 18 cryptocurrencies that are stored offline, or in a cold wallet.
The 18 cryptocurrencies include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), BAT, Augur, among others. This is surprising given the conservative approach we have seen over the years in the exchange.
The main importance of this new service is that now the trading can be instantaneous, previously they would have to wait even more than one day to access and carry out their operations.
Optimal security measures
In this way, the custody service will use a technology that is known as multi-sig, through which passwords in the power of multiple parties will be required to access or move the funds. Basically, the implementation of this technology seeks to reduce the likelihood of a hacking.
Also, the statement said that customers can configure a list of addresses that will be the only ones to which they can send funds from their wallets; grant auditors access to confirm balances and activity; as well as they can configure different subaccounts with different types of security.
This new service is mainly aimed at the institutional client. In fact, Tyler Winklevoss recognizes that from the beginning Gemini realized the need for a custody solution that is safe, compatible and easy to use for individuals and institutions.
Not to mention that Jeanine Hightower-Sellitto, General Director of Operations of Gemini, said that a service like this was being demanded by institutional investors. He also added that Gemini Custody is the only one in the market that meets the complex requirements without jeopardizing security or liquidity.