Digital Asset Firm Gemini Introduces Electronic OTC Solution

Digital asset firm Gemini is pleased to announce the launch of electronic over-the-counter trading (eOTC), which is described as “a fully-automated crypto trading solution tailored to institutional counterparties worldwide, which will be offered through an affiliate of Gemini Trust Company, LLC (GTC).”

Gemini eOTC offers “a variety of benefits” to institutional traders including:

  • Competitive pricing with optimal execution: Liquidity is sourced from top-tier liquidity providers with deep liquidity pools, enabling counterparties to place large orders for immediate execution at optimal pricing, while incurring minimal transaction costs.
  • Intuitive interface: Traders can customize their Gemini eOTC interface to get real time visibility into changing prices for the assets they are interested in and place and track the status of their trades in real time.
  • Delayed settlement: Gemini eOTC is natively integrated with Gemini Settlement. All trade obligations can settle at a predetermined time through a single settlement ticket.

Through intra-day delayed net settlement, counterparties can “increase capital efficiency and avoid missed opportunities that can result from pre-funding requirements.”

  • Trust and safety: At Gemini, trust and security are our top priorities. GTC is a full-reserve exchange and qualified custodian under the New York Banking Law.

As noted in the update, GTC is “licensed by New York State Department of Financial Services (NYDFS) and SOC 2 Type II compliant.”

As mentioned in a blog post by Gemini, trading crypto at scale “can be complicated and costly. Using a single exchange for a large-scale order can generate significant market impact and slippage, and spreading the trade across multiple exchanges can be expensive and inefficient.”

To alleviate these issues many institutions “turn to over-the-counter (OTC) trading.”

Today, many OTC trading platforms “operate manually through voice and chat involving multiple human touchpoints that can result in taking hours to execute a trade and a lack of visibility into trade status and real-time pricing.”

Gemini eOTC was “built to combine the pricing, deep liquidity, and delayed settlement benefits of OTC trading with the automation, security, and visibility of an integrated trading platform.”

They developed this product “for institutional investors, with experienced traders playing an integral role in the design of the product.:

Gemini eOTC builds “on Gemini’s existing custody, settlement, and OTC trading capabilities that have been tailored to the needs of institutional traders.”

The product is SOC2 Type 2 compliant, “providing counterparties with the high level of trust, security, and compliance they have come to expect from Gemini.”

As clarified in the update, Gemini eOTC will be “offered through GTC affiliate Gemini NuSTAR, LLC.”

As noted in the announcement, Gemini eOTC is currently “available in 70 jurisdictions including the U.S. (available in all states excluding New York State residents), UK, Ireland, and Singapore.”

As covered, the Securities and Exchange Commission (SEC) has filed charges against both Gemini and Genesis pertaining to the Gemini Earn program and the sale of unregistered securities.

Gemini leveraged Genesis to power its Earn program for its clients. Genesis halted redemptions last year as the wheels fell off the crypto markets – leaving Gemini in a bind. In the past weeks, Gemini co-founder Cameron Winkelvoss has been hammering DCG and founder Barry Silbert in regard to the inability to come to terms with funds allegedly held by DCG that belong to Gemini.

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