Gemini, the American cryptocurrency exchange (find out more about the best Bitcoin exchanges here) started by the Winklevoss twins, has become the first-ever exchange to support sub-accounts for institutions, it announced via a blog post.
The author of the post and editor of the Gemini publication on Medium, Jeanine Hightower-Sellitto, describes this addition as the following:
“Sub-accounts allow institutions to segregate trading strategies, funds, end customers, and more across multiple sub-accounts under the same master account. They also make it easier for institutions to earn volume-based trading fee discounts because volume for an institution is aggregated across all of its sub-accounts.”
Overall, sub-accounts are meant for helping out institutional investors – one of the groups putting the most money into Bitcoin – such as hedge funds and other partners that need to run a variety of operations and strategies when it comes to cryptocurrency trading on the Gemini platform.
Sub-accounts are then broken into five different features:
- Account and User Management
- API Functionality
- Instant Fund Transfers Between Sub-accounts
- Aggregation of Volume for Trading Fee Discounts
- Gemini Services for Customers
The first enables account admins to create “an unlimited number of sub-accounts.” From there, these sub-accounts can have different permissions and other sets that help the trading process go faster.
API keys are also introduced, which ensure that sub-accounts can partner up with different services to enhance their experience.
Instant fund transfers are exactly what they sound like – the ability to send crypto or fiat between sub-accounts. However, Gemini doesn’t charge any fees for doing so!
“When we calculate an institution’s volumes for the purposes of volume-based trading fee discounts, we aggregate the trading volume for all of its sub-accounts,” reads the post on the fourth addition. This streamlines the sub-account process for institutional investors.
Finally, the platform now allows institutions to offer these services to their customers via sub-accounts. Each customer would get their own sub-account and go from there.