In addition to being a digital asset exchange, Gemini is a custodian that is licensed to custody your digital assets in trust on your behalf. As a New York trust company licensed by the New York State Department of Financial Services, Gemini is a fiduciary under §100 of the New York Banking Law and held to specific capital reserve requirements and banking compliance standards.
The majority of customers’ digital assets are custodied and secured offline (i.e., air-gapped) in our proprietary Cold Storage System. A technical description of Gemini’s Cold Storage System can be found on our Security page.
Gemini is uniquely positioned to safeguard your digital assets because of our team’s expertise in security and cryptography, as well as our regulatory oversight by the New York State Department of Financial Services, one of the world’s premier banking regulators. Gemini now offers two state-of-the-art custody solutions for your digital assets:
- Depository Account—customer digital assets are pooled together and commingled. The majority of these digital assets are custodied and secured offline in our Cold Storage System. These digital assets are always available for immediate trading. All exchange customers use this type of account, and it’s currently free of charge.
- Segregated Custody Account—customer digital assets are segregated and never commingled. All of these digital assets are custodied and secured offline using unique digital asset addresses in our Cold Storage System, which are independently verifiable and auditable on their respective blockchains. These digital assets are not available for immediate trading and may take up to two business days to retrieve. This service incurs an annual fee as well as additional charges for retrievals in excess of once per month. This service is ideal for institutional customers like hedge funds, mutual funds, and exchange-traded funds, who may be required by law to store their digital assets with a licensed custodian like Gemini in a segregated and non-commingled custody account. A Segregated Custody Account constitutes a bailment arrangement with Gemini, whereby Gemini custodies a customer’s digital assets in trust on the customer’s behalf (i.e., the customer retains title).
For more information on opening a Segregated Custody Account, please contact email@example.com.