Financial Services Superintendent Maria T. Vullo on Monday announced that the New York State Department of Financial Services has authorized Gemini Trust Company, LLC founded by internet entrepreneurs Cameron and Tyler Winklevoss, to offer the custody services and trading of Zcash, Litecoin and Bitcoin Cash, emerging cryptocurrencies, on its virtual currency exchange based in New York City.
This makes Gemini the world’s first licensed Zcash exchange.
Cryptocurrencies are alternative decentralized global digital currencies that provide users with a more secure and efficient means of payment.
“This action continues New York’s longstanding commitment to innovation and leadership in the global marketplace,” said Vullo. “With smart and thorough regulatory oversight, the development and long-term growth of the industry will remain thriving.”
The Zcash network supports two kinds of transactions, transparent and shielded. Transparent transactions operate similarly to Bitcoin in that the balance and the amounts of the transaction are publicly visible on the blockchain. Shielded transactions utilize z-addresses and are entirely private.
Transactions associated with z-addresses do not appear on the public blockchain. Zcash is the digital cryptography-based asset of the Zcash network, similar to how bitcoin is the digital cryptography-based asset of the Bitcoin network.
As a limited purpose trust company chartered under New York State Banking Law, Gemini can launch Zcash trading immediately, subject to ongoing supervision by the state.