Gemini Introduces New Settlement Product, Gemini Clearing, For OTC Trading
Crypto exchange firm, Gemini, has announced its newest offering, Gemini Clearing that will allow over-the-counter trading for its users. In a blog post, the crypto exchange announced that the new service will be accessible by everyone both retail traders as well as institutional investors.
Gemini follows other exchanges in the industry such as Huobi and Coinbase in introducing OTC trading services for all its customers.
As per the blog post, Gemini Clearing will be exclusively an off-exchange service for crypto trading. The post states that Gemini clients will be able to negotiate and agree on OTC trades and once the agreement is in place, the funds will be sent to their Gemini accounts.
Additionally, the service will allow third parties to broker the deal or two clients can arrange for the trades. The firm said that it is going to come up with various measures which will drastically reduce counterparty risk which will also make sure that the trades will be settled within the set timeline.
According to Gemini, the new OTC service will also enhance privacy since the trade details will be kept private and will not be published. This means that the trade details will only be available to the individuals or institutions involved.
To deal with fraudsters and to ensure compliance with the government requirements, all the individuals or institutions using the new service will be required to adhere with the set company KYC and anti-money laundering (AML) guidelines.
In other news, the company also announced that Noah Perlman will join the exchange as Chief Compliance Officer with the firm insisting that compliance is one of its core pillars.
Perlman is an experienced financial crime expert and previously worked as the Head of Financial Crimes at Morgan Stanley.
Coitelegraph reports that Off-exchange has been on the rise in the recent past with Kraken reporting that trading on its OTC service has increased by about 20 percent this year.