Winklevoss Brothers Granted Crypto Exchange Patents

The two patents allow settlement of exchange traded products with cryptocurrencies

by Marin Marinov
09 May • 3 min
In News

The founders of digital asset platform Gemini, Cameron and Tyler Winklevoss, have been granted two crypto patents for exchange-traded products (ETPs) by the US Patent and Trademark Office (USPTO) that will allow it to settle ETPs using digital coins.

Their company Winklevoss IP outlined a system for settlement of ETPs, based on cryptocurrencies such as “Bitcoins, Namecoins, Litecoins, PPCoins…Ripple, Dogecoins…”. Winklevoss filed both patents in December 2017.

A month ago Winklevoss IP was granted a patent for a system that wants to improve security of digital transactions like the financial activities on Gemini platform.

Winklevoss IP has been awarded several copyrights licenses from USPTO.

Winklevoss and ETPs

Exchange-traded products are securities whose price is based on other financial instruments that they are linked to: currency, commodity, interest rate, share price or indices. ETPs can be different types including exchange-traded funds (ETFs), closed-end funds (CEFs), exchange-traded currencies (ETCs) and others. Only some of the crypto funds are exchange-traded.  

various numbers on an electronic screen

The Winklevoss twins, known in the crypto world with Gemini and various investments, had a long-running saga with the US Securities and Exchange Commission (SEC) over their attempt to register exchange-traded Bitcoin fund. SEC has rejected several times Winklevoss plan for an ETF because of lack of regulation and high investor risk. These concerns were put forward in the rejection of ETFs applications of other companies.

In a possible change of its tune, SEC might be moving towards approval of Bitcoin ETFs following the application of two crypto funds for listing on the the New York Stock Exchange (NYSE), as the consultations with sector stakeholders have been extended.

Earlier this year, Dalia Blass, Director of the Division of Investment Management at the SEC, downplayed the possibility of changing the rules.

“There are a number of significant investor protection issues that need to be examined before sponsors begin offering these funds to investors,” Blass wrote in a public staff letter.

In the meantime CME Group and Cboe Global Markets, two of the big traditional US stock exchange operators, enabled Bitcoin (BTC) futures. NASDAQ and NYSE owners have also expressed willingness for cryptocurrency exchange in the future.

Note: Cover`s photo - "Winklevoss Twins - Caricature" by DonkeyHotey is licensed under CC BY 2.0