Gemini, the digital assets exchange founded by the Winklevoss brothers, has acquired Shard X in June 2021. Shard X develops multi-party computation (MPC) cryptography, which is a secure distributed method of computation for mining and other blockchain services that still ensures data privacy. Gemini hopes that implementing this technology will speed up its platform, which is used for trading bitcoins futures as well as cryptocurrency. But is it a smart move for the company’s patent portfolio? Winklevoss IP does not have any patent assets for cryptography, which explains why the company was looking to acquire. However, Shard X does not have any patents for its technology, leaving it open to infringement.         

The blockchain community has mixed feelings about patenting, which is reflected in Gemini’s business decisions. In November 2019, it acquired Nifty Gateway, an NFT platform without patents that has since spiked in popularity. However, in January 2021 Gemini acquired crypto credit card company Blockrize, which has two patent applications that were assigned to Winklevoss IP months before the deal was announced. Looking at Gemini’s patent activity, which has slowed since 2019, may be a better indicator of where the company will look to acquire in the future. Security and Digital Computing are two important areas for a robust portfolio. Keep up with Gemini and other companies on the Cryptocurrency Patent Forecast®.