Gemini crypto exchange has launched Gemini Clearing for all the traders and institutional investors. Through this new clearing and settlement solution (as they call it), any two parties can create and settle a trade instantly.
For example: If you would like to sell your cryptocurrency off the order books, then you have to create a sell order using the Gemini Clearing’s Web UI, or via the REST API or FIX API. Once the order is placed, the other party should confirm this order (buy from you).
In simple words: Gemini Clearing acts as an escrow and will release the trade once the transaction from both the parties are confirmed. This is how any off-exchange (also known as Over-The-Counter) trade takes place.
As mentioned in the blog post, Gemini Clearing is here to ensure timely settlement and mitigate counterparty risk. Other regulatory and privacy benefits are an added bonus. Do note the settlement is only possible between Gemini exchange account holders.
Token symbols supported are as follows:
Several exchanges launching OTC desk trades have seen an increase in the number of users and overall transactions. Kraken, in fact, saw 2000% increase in its trading volume as it supported USD, EUR, CAD, and JPY.
Gemini Clearing, however, is now acting as a support for OTC desk for Gemini (the exchange). The company also offers a full suite of off-exchange services for customers worldwide.