Crypto exchange Gemini announces new solution to support off-exchange, OTC desk trades

Crypto exchange Gemini announces new solution to support off-exchange, OTC desk trades

Cryptocurrency exchange Gemini has announced a new digital clearing and settlement solution for off-exchange or over-the-counter (OTC) cryptocurrency trades.

Called Gemini Clearing, the solution will allow crypto trades that are negotiated off-exchange or OTC to settle between Gemini accounts.

“Such trades can either be arranged bilaterally between two parties or brokered via a third party,” Jeanine Hightower-Sellitto, Managing Director of Operations at Gemini, said in an online post. “Gemini Clearing provides regulated clearing and settlement services for such pre-arranged trades, which helps to ensure timely settlement and mitigate counterparty risk.”

Gemini does not have an OTC desk itself but would be supporting OTC desk trades with Gemini Clearing.

The new solution addresses counterparty risk by ensuring that no funds are transferred between Gemini accounts until both parties of the trade are fully funded. Moreover, trade details are known only to the parties involved and are not published via Gemini’s market data feed.

Importantly, each party is subject to know your customer (KYC) and anti-money laundering (AML) policies.

With Gemini Clearing, trades are settled immediately or inside an approved settlement window, the blog post said.

The announcement follows Gemini’s recent expansion to Australia. The exchange has also joined crypto-friendly U.S. bank Silvergate Exchange Network (SEN) to offer fast fiat transfers.

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