The U.S. based cryptocurrency exchange, Gemini, announced it will be launching its own custody service - Gemini Custody, Cointelegraph reports on September 10th.
The newly launched service will enable its customers to check balances, initiate transactions and grant view-only privileges to auditors in order to check the said balances or transfers. The assets stored on the platform will be interchangeable with the exchange's cold storage funds without the need to wait for the funds to actually leave the cold storage.
At the moment, the custody service supports 18 cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC), Zcash, 0x (ZRX), Augur (REP), Basic Attention Token (BAT), Bread (BRD), Dai (DAI), Decentraland (MANA), Enjin (ENJ), Flexacoin (FXC), Gemini dollar (GUSD), Kyber Network (KNC), Loom Network (LOOM), Maker (MKR) and OmiseGo (OMG).
As we've seen on Coinbase's recent example, a lot of established exchanges are considering custody services as a way forward. With the proven security systems, the custody services target larger investors, thus providing income without the bulky trading system's maintenance and other costs. With Gemini being compliant with U.S. regulation, as well as being around ever since 2014, they will surely attract their part of the audience for the new platform. It will be interesting to see if the competition exchanges now experience will translate into the custodial services or will this new approach to crypto become an opportunity to introduce order, cooperation and regulation into the space.