DeFi comes to New York as Gemini lists Compound

In brief

  • Gemini has announced support for Compound, Amp and Pax Gold.
  • The exchange worked with the New York State Department of Financial Services to get approval for the assets.
  • The state of New York is generally strict with regulatory oversight.

Gemini crypto exchange announced Friday, traders were able to start depositing Pax Gold, Amp and Compound into their accounts. Trading in the assets begins on September 15.

The New York-based exchange, led by Cameron and Tyler Winklevoss, said it would offer US dollar trading pairs for the three new tokens through its ActiveTrader platform and API connections.

The most notable addition is $ COMP, the governance token for the Compound decentralized lending protocol with a market capitalization of $ 563 million, according to to metrics site Coin Gecko. Governance tokens are used to vote on network updates – that’s part of what makes Compound more decentralized than other blockchain networks.

$ COMP is earned by those who lend money on Compound. Since earning so-called “ governance tokens ” in this way is a relatively new phenomenon, and this summer’s DeFi craze is on an unprecedented scale, regulators may be in trouble with the coin. But New York regulators, known for being stricter than other states, are okay with Gemini listing the token.

Another token that Gemini has listed is Amp. Amp is a digital collateral token that provides “instant, verifiable collateral for any kind of value transfer.” In the past 24 hours, the trading volume was $ 337,684, according to to decentralized exchange Uniswap. The latest is Pax Gold (PAXG), a stablecoin linked to the gold price. Market capitalization is over $ 61 million.

Gemini said it had taken the proper regulatory steps to enable its latest listings. Especially the state of New York is strict When it comes to cryptocurrency regulation and exchanges, you’ll need a BitLicense from the New York State Department of Financial Services to list assets.

“We have worked closely with the New York State Department of Financial Services to obtain approval to offer trading and custody services for these new assets and we look forward to offering mission-focused projects in the future,” Gemini said in a statement. statement.

Tyler Winklevoss wrote on Twitter Friday that the “DeFi Revolution is underway.” Compound will be the first decentralized financial (DeFi) token available to trade on Gemini – an exchange that typically lists fewer assets than others. With the new three tokens, a total of 12 assets will be available to trade on the exchange.

Gemini may seem to be behind in the DeFi race – other major exchanges have long listed DeFi tokens – but the exchange has taken a wise approach to New York’s strict laws by getting working regulators approval while others have not have done.

For example, Coinbase was one of the first exchanges to list Compound, but users in New York cannot trade the token.