Crypto exchange Gemini, owned by the Winklevoss twins, is branching out into wealth management services, as evidenced by its latest big acquisition.
On January 13, Gemini announced an agreement to buy financial management company Bitria for an undisclosed amount. Bitria has a digital asset platform and offers wealth management tools for financial advisors.
According to CNBC, Gemini, worth $7 billion, marked a major step forward in wealth management services with this latest move.
Gemini’s global head of business development, Dave Abner, said “this move creates one of the industry’s first full-service digital asset custodians for advisors.”
Institutional product expansion
Gemini plans to combine its crypto exchange and custody services with Bitria’s portfolio management programs. This would allow financial advisors to perform more advanced operations such as tax loss harvesting, Abner added. Other services will include portfolio rebalancing, fee collection and billing, account planning and data connectivity. Speaking to CNBC, he continued:
“Advisors currently manage the largest pool of money in the country, and they hear from their clients who want access to crypto,”
Gemini aims for a one-stop solution for investors and advisors to efficiently manage both traditional assets and crypto investments.
Abner added that Gemini is already the largest service provider for crypto ETFs in the world, and is now “moving into the wealth space” and aims to be the first to do so.
“No one else in the crypto space seeks to serve the wealth management community quite like Gemini,”
Gemini first partnered with Bitria in August 2020 when the company was called Blockchange. Bitria staff and co-founder Daniel Eyre will join the Gemini team. Eyre said the future of wealth management “lies in digital assets and blockchain technology.”
In late November, Gemini Chief Compliance Officer Andy Meehan called for financial regulators to be open-minded in what will likely be the year of crypto regulation.
The year of mergers and acquisitions
This year could see an increase in mergers and acquisitions as the world’s largest exchanges expand their operations beyond crypto trading. On Jan. 12, Coinbase announced the acquisition of Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange FairX as it plans to offer crypto derivatives to US customers.
This week, FTX US announced that it was considering a foray into equity trading, which would put the exchange in direct competition with Robinhood and eToro.
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