Gemini vs Kraken — Head-to-Head Custody Comparison

An independent, data-driven comparison of Gemini and Kraken across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Gemini scores 7.9 vs Kraken's 7.6. Gemini leads in 3 of 8 categories.

Gemini is better suited for Compliance-focused users, NY-based investors, Security-conscious traders. Kraken is better suited for Active traders, Security-conscious exchange users, International users.

7.9

GoodCustody Score

Gemini

7.6

GoodCustody Score

Kraken

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Gemini	Kraken	Winner
Security	20%	8.5	8.5	Tie
Insurance	15%	7.5	5.5	Gemini
Regulatory	15%	9.0	8.0	Gemini
Fee Transparency	10%	7.0	8.0	Kraken
Track Record	15%	7.5	9.0	Kraken
Withdrawal Flexibility	10%	8.5	8.5	Tie
Reporting & Audit	10%	9.0	8.0	Gemini
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	7.9	7.6	Gemini

Visual

Score Radar

Visual overlay of Gemini and Kraken across all categories.

GeminiKraken

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (8.5 vs 8.5)

Gemini uses Institutional hot/cold custody key management with 95%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: Gemini Earn issues (Genesis lending). Exchange itself unbreached..

Kraken uses Exchange hot/cold wallet system key management with 95%+ cold storage in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No major security breaches in 13+ years.

Insurance (7.5 vs 5.5)

Gemini offers $200M+ hot wallet insurance via Leading carriers. One of the highest disclosed insurance amounts among exchanges.

Kraken offers Not explicitly disclosed via N/A. Maintains significant cold storage reserves. Proof of reserves verified.

Regulatory (9.0 vs 8.0)

Gemini holds NY Trust Company (NYDFS), SOC 2 Type 2, Multiple state licenses and is a qualified custodian operating in United States. NY Trust Company charter — highest US regulatory standard for crypto.

Kraken holds FinCEN MSB, State money transmitter licenses, FCA registered (UK), AUSTRAC (Australia) and is not a qualified custodian operating in United States / Global. One of the most compliant global exchanges. Bank partnership for USD.

Fee Transparency (7.0 vs 8.0)

Gemini charges None in annual custody fees with 0.2-0.4% maker/taker (ActiveTrader) per transaction. 10 free crypto withdrawals per month. ActiveTrader has competitive fees.

Kraken charges None in annual custody fees with 0.16-0.26% maker/taker per transaction. Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Track Record (7.5 vs 9.0)

Gemini was founded in 2014 and is headquartered in New York, NY. AUM: $30B+ in assets. Incident history: Gemini Earn issues (Genesis lending). Exchange itself unbreached..

Kraken was founded in 2011 and is headquartered in San Francisco, CA. AUM: $20B+ in quarterly trading volume. Incident history: No major security breaches in 13+ years.

Withdrawal Flexibility (8.5 vs 8.5)

Gemini withdrawal fees: Free withdrawals (10/month). Minimum account: $1 minimum. Supported assets: Bitcoin, Ethereum, 100+ cryptocurrencies.

Kraken withdrawal fees: Network fees + small flat fee. Minimum account: No minimum. Supported assets: Bitcoin, Ethereum, 200+ cryptocurrencies.

Reporting & Audit (9.0 vs 8.0)

Gemini: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Kraken: SOC compliance is SOC 2 Type 2. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 2.0)

Gemini is a exchange custody provider. Key management: Exchange-managed custody with SOC 2 Type 2 certified infrastructure..

Kraken is a exchange custody provider. Key management: Exchange-managed hot/cold wallet system with proof of reserves..

Fees

Fee Comparison

Side-by-side fee breakdown for Gemini and Kraken.

Fee Type	Gemini	Kraken
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0.2-0.4% maker/taker (ActiveTrader)	0.16-0.26% maker/taker
Withdrawal	Free withdrawals (10/month)	Network fees + small flat fee

Gemini: 10 free crypto withdrawals per month. ActiveTrader has competitive fees.

Kraken: Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Gemini	Kraken
$200M+ insurance	✓	✗
10 free withdrawals/month	✓	✗
13+ year track record	✗	✓
24/7 customer support	✗	✓
95%+ cold storage	✗	✓
ActiveTrader low fees	✓	✗
Futures and margin trading	✗	✓
Gemini Dollar (GUSD)	✓	✗
NY Trust Company charter	✓	✗
Proof of reserves	✗	✓
SOC 2 Type 2 certified	✓	✗
Staking services	✗	✓

Recommendation

Who Should Choose Which?

Gemini is better if you…

✓Are a compliance-focused users
✓Are a ny-based investors
✓Are a security-conscious traders
✓Are a stablecoin users
✓Want: NY Trust Company — highest regulatory standard
✓Want: SOC 2 Type 2 certified
✓Want: $200M+ disclosed insurance

Kraken is better if you…

✓Are a active traders
✓Are a security-conscious exchange users
✓Are a international users
✓Are a stakers
✓Want: 13+ year track record with zero major breaches
✓Want: Proof of reserves — verified by third party
✓Want: 95%+ assets in cold storage

FAQ

Frequently Asked Questions

Is Gemini or Kraken better for Bitcoin custody?

Gemini scores 7.9 vs 7.6 in our weighted Custody Score. Gemini leads in 3 of 8 scoring categories. However, the best choice depends on your specific needs: Gemini is best for Compliance-focused users and NY-based investors, while Kraken suits Active traders and Security-conscious exchange users.

What is the difference between Gemini and Kraken?

Gemini is a exchange custody provider, while Kraken is a exchange custody provider. Gemini excels in Regulatory, whereas Kraken is strongest in Track Record.

How do Gemini and Kraken fees compare?

Gemini charges None annual custody fees with 0.2-0.4% maker/taker (ActiveTrader) transaction fees. Kraken charges None annual custody fees with 0.16-0.26% maker/taker transaction fees.

Which is more secure, Gemini or Kraken?

Gemini scores 8.5/10 for security while Kraken scores 8.5/10. Gemini uses Institutional hot/cold custody key management, and Kraken uses Exchange hot/cold wallet system.