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The U.S.-based Gemini exchange has partnered with Unstoppable Domains to provide cryptocurrency custody for .crypto domains. The fact that Gemini will provide custody for blockchain domains is a significant step.
The Winklevoss twins-owned exchange Gemini has partnered with Unstoppable Domains to provide cryptocurrency custody services for .crypto domains. The business of the custody of digital currencies has grown in the blockchain ecosystem in the past years with few licensed custodial crypto companies in major economies of the world.
Unstoppable said its domain registrars will be able to utilize Gemini’s custody services when purchasing .crypto addresses for their clients through its service. As detailed from the announcement, the blockchain domains are crypto-collectibles also called Non-fungible Tokens NFTs built on the Ethereum (ETH) network. Commenting on the new alliance, Unstoppable Domains Co-Founder Brad Kam said:
“Gemini providing custody for blockchain domains is a watershed moment for blockchain domains. We’re extremely encouraged by this, as well as the interest from Fortune 1000 companies – several of which have already claimed domains. We’re really excited by this and the interest from forward thinking domain companies like 101Domain and EnCirca.”
The rise of crypto-collectibles has necessitated the need for safeguarding these digital assets as much as traditional cryptocurrencies as they find value for being used as payment, as well as sending encrypted messages over P2P networks. With the Gemini-Unstoppable partnership, the custody of these tokens will be free from any centralized control.
Gemini Exchange’s Unique Custodial Service for .Crypto Domains
Cryptocurrency custodial service is a product offered by the Gemini exchange based in the U.S. It is regulated, audited, and has the New York State’s BitLicense. Gemini Custody has over $200 million in custody insurance coverage which is brokered by Marsh and Aon. Besides seeking custody services, Gemini customers can also purchase additional insurance for their segregated crypto assets.
Gemini custody supports a wide range of digital assets including all tradable on the exchange’s trading platform. Its accommodation of collectibles has made it expand its partnership reach, a dividend that’s obvious with Unstoppable domains alliance.
Kristen Mirabella, Principal at Gemini said in a statement:
“Gemini is always excited to support new uses for cryptocurrency and to bring more people into the crypto ecosystem. By providing readable ERC-721 domains that allow for both digital asset payments and uncensorable websites, Unstoppable Domains have brought another use case for NFTs beyond crypto collectibles. We think there’s a big opportunity for custody providers to support this asset class, and we’re proud to be the first licensed exchange and custodian to offer such a service”.
Arguably it is one of the most secure cryptocurrency custody providers. Gemini’s offline storage systems use multi-signature technology, role-based governance protocols, and multiple layers of biometric access controls and physical security to safeguard customer assets. Mandatory whitelisting enhances account-level security.
Meeting the Growing Demand for Custodial Services
The massive surge experienced by the cryptocurrency ecosystem in late 2017 spiked such digital asset revenue ushered a lot of crypto hedge fund companies out of compliance. The lacuna created opened up almost a $20 billion hole in the custody subsector of which most cryptocurrency exchanges have been trying to fill up.
With more institutional involvement in blockchain and digital currencies, the demand for cryptocurrency custody services will skyrocket in the years to come and firms that have taken a value position will be the biggest gainers by then.