Gemini Trust serves as escrow agent to support DBL Digital’s new product offerings
CHICAGO–(BUSINESS WIRE)–DrawBridge Lending, d/b/a DBL Digital, a National Futures Association registered Commodity Pool Operator and Commodity Trading Advisor that helps investors monetize bitcoin and other cryptocurrency holdings through investment and financing products, has expanded their product offering for cryptocurrency investors utilizing services offered by Gemini Trust Company, LLC, a cryptocurrency exchange and custodian.
“DBL Digital occupies a unique space in the industry offering sophisticated structures, robust risk management, and a priority on the safety of customer collateral. Combining forces with Gemini is a win-win for investors,” said Jason Urban, CEO of DBL Digital. “We look forward to continuing our relationship with Gemini and building out additional investment vehicles within the Gemini ecosystem.”
DBL Digital facilitated the implementation of a yield-enhancing strategy that provided above-market returns for Libertas Fund LLC, a quantitative multi-strategy digital asset fund managed by Hyperion Decimus (although past results are not necessarily indicative of future results). Gemini Trust served as the escrow agent to support the offering.
Hyperion Decimus desired a solution to produce a yield and hedge on its digital asset holdings at Gemini Custody™.
“Hyperion Decimus sought out an effective and transparent way to implement a strategy that provided both yield and a hedging component on our digital assets and we were excited that DBL Digital could offer this solution utilizing Gemini Custody™ to efficiently and securely execute the strategy,” said Chris Sullivan, Principal/Portfolio Manager at Hyperion Decimus.
“Firms like DBL Digital and Hyperion Decimus continue to help drive the maturation of the digital asset trading landscape. These services demonstrate to the market that investors can participate in bespoke transactions while maintaining confidence that their assets are safeguarded by a premier licensed custodian,” said Brian Keogh, Principal at Gemini.
“We’ve chosen to work with Gemini because they are a regulated qualified custodian. Their institutional-grade, offline custody solution met our security concerns and provides many helpful features including sub-accounts and the instant ability to trade out of offline storage,” says DBL Digital President and Chairman, Thomas Anderson. “Additionally, Gemini is one of the only exchanges to offer a clearing product specifically for the crypto market. We feel their innovation matches our desire to think outside-the-box to offer clients sophisticated financial solutions to serve their ever-growing needs.”
DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. DRAWBRIDGE LENDING, LLC HAS HAD LITTLE OR NO EXPERIENCE IN TRADING ACTUAL ACCOUNTS FOR ITSELF OF FOR CUSTOMERS. BECAUSE THERE ARE (LITTLE OR) NO ACTUAL TRADING RESULTS TO COMPARE TO THE HYPOTHETICAL RESULTS, CUSTOMERS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THESE HYPOTHETICAL PERFORMANCE RESULTS.
VIRTUAL CURRENCY DISCLOSURE: DRAWBRIDGE LENDING IS A MEMBER OF THE NATIONAL FUTURES ASSOCIATION (NFA) AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. DRAWBRIDGE LENDING HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN ITS COMMODITY POOL. ALTHOUGH NFA HAS JURISDICTION OVER DRAWBRIDGE LENDING AND ITS COMMODITY POOL, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY DRAWBRIDGE LENDING. ONE OR MORE JURISDICTIONS MAY, IN THE FUTURE, ADOPT LAWS, REGULATIONS OR DIRECTIVES THAT AFFECT VIRTUAL CURRENCY NETWORKS AND THEIR USERS. SUCH LAWS, REGULATIONS OR DIRECTIVES MAY IMPACT THE PRICE OF VIRTUAL CURRENCIES AND THEIR ACCEPTANCE BY USERS, MERCHANTS AND SERVICE PROVIDERS. THE RELATIVELY NEW AND RAPIDLY EVOLVING TECHNOLOGY UNDERLYING VIRTUAL CURRENCIES INTRODUCES UNIQUE RISKS. FOR EXAMPLE, A UNIQUE PRIVATE KEY IS REQUIRED TO ACCESS, USE OR TRANSFER A VIRTUAL CURRENCY ON A BLOCKCHAIN OR DISTRIBUTED LEDGER. THE LOSS, THEFT OR DESTRUCTION OF A PRIVATE KEY MAY RESULT IN AN IRREVERSIBLE LOSS. THE ABILITY TO PARTICIPATE IN FORKS COULD ALSO HAVE IMPLICATIONS FOR INVESTORS. FOR EXAMPLE, A MARKET PARTICIPANT HOLDING A VIRTUAL CURRENCY POSITION THROUGH A VIRTUAL CURRENCY EXCHANGE MAY BE ADVERSELY IMPACTED IF THE EXCHANGE DOES NOT ALLOW ITS CUSTOMERS TO PARTICIPATE IN A FORK THAT CREATES A NEW PRODUCT. MANY VIRTUAL CURRENCIES ALLOW MARKET PARTICIPANTS TO OFFER MINERS (I.E., PARTIES THAT PROCESS TRANSACTIONS AND RECORD THEM ON A BLOCKCHAIN OR DISTRIBUTED LEDGER) A FEE. WHILE NOT MANDATORY, A FEE IS GENERALLY NECESSARY TO ENSURE THAT A TRANSACTION IS PROMPTLY RECORDED ON A BLOCKCHAIN OR DISTRIBUTED LEDGER. THE AMOUNTS OF THESE FEES ARE SUBJECT TO MARKET FORCES AND IT IS POSSIBLE THAT THE FEES COULD INCREASE SUBSTANTIALLY DURING A PERIOD OF STRESS. IN ADDITION, VIRTUAL CURRENCY EXCHANGES, WALLET PROVIDERS AND OTHER CUSTODIANS MAY CHARGE HIGH FEES RELATIVE TO CUSTODIANS IN MANY OTHER FINANCIAL MARKETS.
About DrawBridge Lending:
DrawBridge Lending, dba DBL Digital (DBL), is a National Futures Association registered Commodity Pool Operator and Commodity Trading Advisor that helps investors monetize Bitcoin and other approved cryptocurrencies through innovative investment and financing products.