Key Highlights
As a privately held digital asset marketplace, Gemini facilitates more than just cryptocurrency transactions; it allows you to engage in secure storage, trading, and management of over 150 digital currencies. Founded under the formal name of Gemini Trust Co., LLC, this platform made its debut in 2014.
The service offerings of Gemini are diverse, with varying interfaces and pricing models tailored for both novice investors and seasoned traders. Featuring a smartphone application, a digital payment option, and its proprietary currency—the Gemini dollar—this stablecoin is uniquely pegged to the U.S. dollar, setting it apart from many other digital currencies.
Global Presence and Expansion
October 2015 marked the live U.S. launch of Gemini, initial operations having commenced in 2014. The business ventured beyond domestic borders, first into Canada and the United Kingdom, by mid-2016.
To address the burgeoning interest in cryptocurrencies across Asia, Gemini expanded into markets including Hong Kong, Singapore, South Korea, and Japan. The exchange now services users in over 60 nations globally.
Pioneering the method used by all modern crypto exchanges, Gemini’s innovative spirit was evident when it introduced the first-ever daily bitcoin auction in September 2016, followed by daily ether auctions in July 2017.
Platform Essentials
Originally, Gemini was seemingly geared towards institutional trading participants rather than individual investors, primarily focusing on Bitcoin transactions. This focus has since shifted, and the platform now supports over 120 cryptocurrencies accessible to a wide range of investors and traders.
Operating continually round-the-clock, except during maintenance intervals, Gemini functions much like other online brokerage entities, though it notably lacks certain features like margin trading available on platforms such as Kraken.
In line with other digital asset marketplaces, Gemini supports the exchange of various digital currencies, whether via digital currency pairings (e.g., using bitcoin to acquire litecoin) or through fiat currency purchases.
To engage in trades on Gemini’s platform, customers are required to connect a bank account and initiate transactions either through wire transfers or ACH deposits.
The Winklevoss Legacy
Majority stakeholders Cameron and Tyler Winklevoss are the principal proprietors of Gemini. Beyond their ownership of this exchange, they gained notoriety following their $65 million settlement with Mark Zuckerberg, alleging that he co-opted their original concept, a narrative depicted in the film “The Social Network.” During that period, all parties were students at Harvard University.
As the foundation for secure transactions, most user holdings are kept in offline “cold storage,” while accessible funds reside in an insured “hot wallet,” showcasing Gemini’s commitment to user security.
Gemini Clearing & Custody
Facilitating off-market trades and expediting transaction processes, Gemini’s clearing services offer a reliable solution where both involved parties must be pre-funded, with transactions being finalized through Gemini’s systems.
The New York State Department of Financial Services (NYDFS) has issued a license to Gemini, allowing it to maintain customer digital assets in trust. This includes adhering to reserve requirements and complying with banking standards, ensuring that your digital assets are held securely.
In partnership with a New York State-chartered bank like State Street or JP Morgan Chase, Gemini retains all customer funds, aligning with conventional banking requirements to guarantee that all monetary forms are sufficiently backed by reserves.
Furthermore, Gemini offers insurance coverage of up to $200 million for cryptocurrency assets, protecting against losses from hacking incidents, fraudulent transfers initiated by Gemini, or internal theft.
Gemini’s Fees
Fee structures on Gemini vary across its services. For instance, Active Trader fees fluctuate between 0.40% and 0.03% for takers and 0.20% to 0.00% for makers, with lower 30-day trading volumes resulting in higher fees.
Various fees apply to mobile, web transactions, crypto custody, and transfers, with rates ranging from flat dollar amounts to percentage-based transaction costs.
Gemini Active Trader Platform
The platform dedicated to active traders at Gemini enables users to execute orders, examine order books, and engage in trading pairs. The currency pairings encompass more than 70 U.S. dollar (USD)/crypto pairs alongside over 17 crypto-to-crypto pairs.
Fast Fact
For individual clients, the default account type offered is a zero-fee depository. Large institutional clients, on the other hand, may choose a segregated custody account that employs secure, offline, and auditable storage, referred to as the Cold Storage system, designed for institutional clients such as mutual funds, ETFs, and hedge funds.
One of the longest-standing regulated crypto exchanges globally, Gemini extends its offerings beyond just trading with services like a mobile application, a payment app, and its unique currency, the Gemini dollar.