Monday, December 5, 2022

Power Play: Winklevii’s Gemini Moving Toward Block Trading Crypto

Power Play: Winklevii’s Gemini Moving Toward Block Trading Crypto

The Winklevoss Twin’s crypto exchange Gemini is making its most decisive bid yet to entice institutional investors. That’s because the exchange is launching block trading functionalities, i.e. “the ability to buy and sell large quantities of digital assets outside of Gemini’s continuous order books.”

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‘Onward and Upward,’ Says Gemini

In an April 9th post uploaded by Cameron Winklevoss to the Gemini blog page, the exchange declared they would be offering block trading services for their clientele as of April 12th, 2018.

The post stated:

“As part of our mission to continue to improve and expand our platform, we are excited to launch Gemini Block TradingTM, a fully electronic block trading facility. Block Trading enables our customers to buy and sell large quantities of digital assets outside of Gemini’s continuous order books, creating an additional mechanism to source liquidity when trading in greater size. Gemini Block TradingTM will go live at 9:30am ET on Thursday April 12th.”

Of course, the idea is that such a service will cater to the needs of large institutional investors, such as hedge funds, who need to trade large amounts of crypto in a fluid and efficient manner.

Going forward, traders will be allowed to place block orders on Gemini, listing out whether they’re buying or selling, the amount of assets they’re wanting to move, the minimum threshold acceptable for the order being filled, and the acceptable price limit.

Market makers will receive the orders simultaneously, allowing anyone to jump in and actualize the trade.

Gemini, Coinbase Embracing Institutions, Regulation

America’s top two cryptocurrency exchanges have made 2018 the year they’re both going all-in on courting institutional money and collaborating with regulators.

In early March, Coinbase announced its Coinbase Index Fund, a venue for accredited U.S. investors to invest in a weighted fund pegged to “all assets listed on GDAX,” Coinbase’s trading platform. Gemini’s launched the next institutional-minded salvo with its block trading bid.

On the regulatory front, in mid-March Gemini proposed a self-regulatory organization for the cryptoverse ecosystem, the Virtual Commodity Association. Coinbase has just made waves in kind as new reports suggest they’re attempting to become a licensed brokerage with the United States’ Securities and Exchange Commission (SEC).

In the mean time, the rat race toward the daylight of the mainstream continues.

What’s your take? Do you think block trading could be huge for the adoption of crypto? Sound off in the comments below. 

Images via Gemini, Quartz

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