In addition to being a next-generation digital asset exchange, Gemini is also a fully-licensed digital asset custodian and fiduciary. The New York State Department of Financial Services (NYSDFS) has chartered Gemini as a limited-purpose trust company and holds us to specific capital reserve requirements and banking compliance standards.
The vast majority of our customers’ digital assets are secured in our proprietary offline (i.e., air-gapped) storage system which we call “Cold Storage.” High-level technical details of Gemini’s Cold Storage system are described on our Security page.
We believe that Gemini is uniquely positioned to safeguard digital assets because of our attention to cryptographic and cyber security in addition to our oversight by one of the world’s premier banking regulators. Gemini now offers two state-of-the-art solutions for custodying digital assets:
- Depository Account—customer funds are pooled with each other, and more than 85%1 of these digital assets are kept in Cold Storage. All exchange customers already use this type of account, and it’s currently free of charge.
- Segregated Account—customer funds are never commingled with each other or any other Gemini accounts and are safeguarded in Cold Storage using unique Bitcoin addresses. These digital assets are not available for immediate trading and may take up to two business days to retrieve.2 This service incurs a fee of 8 basis points (0.08%) per month (0.964% APR),3 and additional charges may apply for more than one retrieval per month. This service is ideal for institutional customers like hedge funds, mutual funds, and exchange-traded funds which may be required by law to store their digital assets with a regulated custodian like Gemini in separate and dedicated custodial accounts.
Fees are charged on the last business day of every month and deducted from an account’s U.S. dollar or digital asset balance based on daily Gemini exchange rates.
For more information on each of these services, please contact firstname.lastname@example.org.
2 “Business days” exclude weekends, U.S. banking holidays, and U.S. asset trading holidays.
3 Fees are calculated based on the average aggregate digital asset account balance sampled daily and valued at 4:00 p.m. Eastern Time.