Off-Exchange or OTC Crypto Trades Now Available on Gemini Clearing

Published at: Sept. 5, 2019

The Winklevoss brothers-led Gemini crypto exchange has introduced its new clearing and settlement product Gemini Clearing.

No OTC desk on Gemini

Gemini announced the new clearing and settlement solution in a blog post on Sept. 5, explaining that the Gemini Clearing allows traders to negotiate off-exchange or over-the-counter (OTC) crypto trades using Gemini accounts.

Gemini Clearing is a fully digital platform providing regulated clearing and settlement services for pre-arranged off-exchange or OTC trades, which intends to reduce counterparty risk as well as ensure immediate settlements. The post clarifies that the Gemini does not have an OTC trading desk.

Brokers allowed

According to the announcement, off-exchange or OTC trades on Gemini Clearing platform can be carried out both between two parties or through third-party brokers. The platform ensures that no funds are transferred between Gemini accounts until both parties in the trade are fully funded, the exchange stated. 

Off-exchange or OTC cryptocurrency trading is a type of trading where a deal happens directly between two interested parties without the interference of an exchange. Recently, major cryptocurrency platform Kraken announced that trades on its OTC desk had increased by a factor of 20 since early 2019.

On Sept. 3, Gemini introduced a sub-accounts feature for institutional clients, enabling them to create an unlimited number of accounts under one master account. According to the company, Gemini is the world’s first crypto exchange and custodian to support such a feature.

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