Winklevoss twins' Gemini buys digital asset platform as the crypto giant eyes wealth management
- Gemini agreed to buy Bitria, whose tools are used by financial advisors to manage bitcoin and other cryptocurrencies.
- The deal marks a push into wealth management for the crypto exchange, which was founded by Tyler and Cameron Winklevoss.
- A study cited by Gemini found that 49% of financial advisors said clients asked about crypto in the past six months.
Gemini announced Thursday a deal to acquire Bitria, signaling a major foray into wealth management for the cryptocurrency exchange founded by Tyler and Cameron Winklevoss.
Bitria's digital asset platform and tools are used by financial advisors to manage cryptocurrencies. Financial terms weren't disclosed.
The pairing of the $7.1 billion crypto giant with the San Francisco-based startup, first reported by CNBC, is an early step in what many experts have forecast to be a year full of similar mergers. Digital asset companies are looking to provide a broader base of services and expand their businesses.
Gemini's acquisition of Bitria will create a full-service digital asset custodian for advisors, according to Dave Abner, Gemini's global head of business development.
"Many advisors currently have limited access to just one or two tokens through closed-end funds and spot crypto ETFs in jurisdictions where they are available," he said in a press release. "Today we are unlocking access to the full digital asset ecosystem for the wealth management community."
Featured services will include portfolio rebalancing, tax loss harvesting, fee collection and billing, account planning, and data connectivity. A study cited by Gemini found that 49% of financial advisors said clients asked about cryptocurrencies within the past six months, up from 17% the year prior.
Gemini's deal also marks the latest sign that the crypto wave is disrupting the finance space.
Late Wednesday, cryptocurrency exchange Coinbase announced a deal to acquire FairX to gain ground in bringing regulated crypto derivatives to US markets.
And earlier this week, credit data company TransUnion announced a partnership with technology firm Spring Labs to make credit information available on public blockchain networks, potentially easing crypto investor's ability to obtain loans.