Gemini, a regulated digital asset exchange, has introduced today its new over-the-counter (OTC) crypto trading service, called Gemini Clearing.
As highlighted by Gemini co-founder Cameron Winklevoss on Twitter, the service will be available to anyone, including both institutional and retail traders.
This is an important distinction as some exchanges, including Huobi and Coinbase, have launched their OTC services exclusively for professional and institutional clients.
How Does Gemini Clearing Work?
Gemini Clearing is an off-exchange, fully-electronic settlement and clearing solution for cryptocurrency trades. Gemini users can now negotiate OTC trades, and when an agreement is reached, have the funds transferred between their Gemini accounts.
Trades can be brokered using a third-party or arranged directly between the two parties. Gemini Clearing will enforce measures that decrease counterparty risk, as well as ensure that trades are settled in a timely manner.
Gemini stated that another benefit of its new OTC service is privacy as trade details will not be published on its market data feed, and will only be known by the parties involved.
As Gemini prides itself on being a regulated and compliant exchange, all parties using the service will be subject to its KYC requirements and BSA/AML program.
Compliance Is Key, Gemini Welcomes New Hire
While on the subject of compliance, Gemini also recently hired Noah Perlman as its new Chief Compliance Officer. Gemini stated in the announcement that ‘Compliance’ remains one of its four pillars. Its other pillars are Security, Product, and Licensing.
Perlman will bring with him a ton of experience from the traditional financial services sector. His previous role was at Morgan Stanley where he led a 350 person strong Financial Crimes Group, as Global Head of Financial Crimes.
The role included responsibility for the management and execution of Morgan Stanley’s AML, Anti-Corruption, Sanctions, Anti-Boycott, and political programs.
He served at Morgan Stanley for 13 years, but prior to that, Perlman worked for the New York division of the United States Drug Enforcement Administration and as an Assistant United States Attorney.
Gemini expressed its excitement in having Perlman onboard to continue building on its tradition of compliance.
Gemini believes that crypto will be the future of money, bringing with it numerous benefits over the fiat currency system we use now. However, for this new technology to reach its potential, the firm says it must have a solid foundation.
That’s why Gemini is focused on market integrity, investor protections, regulation, security, compliance, and other aspects that bring trust to the nascent crypto industry.