The Winklevoss twins have decided to buff up security for their cryptocurrency exchange, Gemini Trust Co. by hiring Nasdaq Inc. to provide a secure and safe trading platform for its users.
Gemini will be integrating Nasdaq’s SMARTS Market Surveillance technology to monitor its marketplace. The system will allow Gemini to monitor all of its cryptocurrency such as Bitcoin and Ethereum, including trading pairs.
The partnership would definitely bolster Gemini’s user base due to the efficiency of Nasdaq’s security system. Many cryptocurrency investors are cautious of different exchanges due to weak security defenses, which has caused many exchanges to lose millions of dollars to cyber breaches.
“We believe that it is this advanced functionality combined with Nasdaq’s proven, rule-based approach to traditional financial market surveillance that will allow for the most thorough monitoring of the evolving crypto-asset marketplace, today and into the future.” wrote Cameron Winklevoss, Gemini Co-Founder and President, in a blog post. “Gemini looks forward to a long and productive relationship with Nasdaq.”
The partnership is one of the first between a financial institution and a digital currency exchange, which may suggest that these institutions may be more open to accepting digital currency.
Although, reports floated around of Nasdaq looking into launching its own Bitcoin futures by mid-2018. If Nasdaq does launch the futures, it will become the third financial institution to adopt digital currency. CBOE and CME have already launched their futures last year.
SMARTS will also be integrated into Gemini Block Trading and Gemini Auctions, which are used to determine settlement prices for Bitcoin Futures Contracts traded on CBOE’s CFE Exchange.
Gemini’s announcement follows after New York Attorney General Eric Schneiderman launched an initiative to look into cryptocurrency exchanges’ policies and practices. Schneiderman sent a letter to 13 exchanges, including Gemini.