Gemini Set to Bring Crypto Custody and Trading Services to RIAs

The move comes as a result of a partnership between Gemini and Blockchange, a crypto investment firm focused on wealth managers.

Full-Spectrum Crypto Services for RIAs

According to a press release issued by Blockchange on Tuesday, the collaboration with Gemini will enable the provision of institutional-grade cryptocurrency trading and custody solutions. Both companies aim to become a “one-stop-shop” for crypto trading and custody for big-money investors. According to the press release, the joint service already has a client in Quantum Capital Management, a wealth management firm with over $125 million in assets under management. The new Gemini-Blockchange product will allow RIAs like Quantum to manage crypto investments for their clients. As part of the service, RIAs will maintain ownership of the underlying cryptocurrencies on behalf of their customers. Commenting on the development, Gemini’s chief operating officer Noah Pearlman, remarked:

The undeniable institutional adoption of digital assets we’re seeing is not just because of gains in the market, but also because companies like Gemini and Blockchange have adopted the same security frameworks as banks. Building solutions with the needs of wealth advisors and other institutional professionals in mind paves the way for more investors to get involved in the powerful network of digital assets.

Rapidly Expanding Crypto Custody Market

Indeed, by law, RIAs must store their client’s holdings with a certified asset custodian. In the last few years, the face of the cryptocurrency custodial landscape has seen some significant growth. Back in July, the Office of the Comptroller of the Currency approved national banks in the U.S. to store cryptos on behalf of their customers. The emergence of crypto custody platforms that adhere to industry best-practices may provide a trigger for investors with limited knowledge of the market to make forays into the nascent asset class. With Bitcoin (BTC) gaining even greater visibility in mainstream circles, more institutional players are looking to embrace BTC ownership. MicroStrategy, the largest business intelligence firm in the world recently announced the purchase of $250 million in bitcoin. In addition to buying and holding BTC as a treasury asset, the company described the purchase as a better alternative to cash. As more institutional money flows into the crypto space, the competition among custody providers will most likely intensify. On the whole, a robust cryptocurrency custodial ecosystem will be net positive for the industry at large.