Brothers Cameron, left, and Tyler Winklevoss, Principals of Winklevoss Capital Management, listen during a hearing called The Investor Perspective: The Future of Virtual Currencies in New York Tuesday, Jan. 28, 2014.

Image: AP Photo/Craig Ruttle/Associated Press

By Stan Schroeder 2015-01-24 01:15:52 UTC

It’s no secret Cameron and Tyler Winklevoss are betting big on Bitcoin: They’ve reportedly invested at least $11 million in the cryptocurrency, and they predict it could be even bigger than Facebook .

On Friday, the brothers announced the launch of Gemini. which they call the next-generation Bitcoin exchange. Originally announced in July 2013. the New York-based Bitcoin exchange will be fully regulated, fully compliant and open to individuals and institutions.

To launch Gemini (Latin for twins), Winklevoss brothers have assembled a team of 14 engineers, finance and security experts (including the two of them). They also have a banking relationship with an unspecified New York State-chartered bank (meaning the dollars you keep on Gemini are eligible for FDIC insurance), and now the only thing missing before Gemini can launch is an OK from the New York State Department of Financial Services (NYSDFS).

Best known for suing Mark Zuckerberg for stealing their idea to build Facebook (and winning $65 million in cash and stock in 2008), Cameron and Tyler Winklevoss have been one of the biggest proponents of Bitcoin. In December 2013, Cameron Winklevoss predicted that in the future, the price of one bitcoin might go as high as $40,000.

To say Bitcoin needs a strong exchange is an understatement. Various Bitcoin exchanges, mostly unregulated, have suffered a series of setbacks in the past year, with the biggest of them all, Mt. Gox. going bankrupt after a large amount of its bitcoins went missing. Bitstamp, another Bitcoin exchange, temporarily shut down operations in January after some of its digital wallets were compromised.

The price of Bitcoin rose above $1,000 in late 2013, but has slumped to less than $200 in Jan. 2015. At the time of this writing, the price of 1 bitcoin equals $235.11.

Still, the Winklevoss brothers aren’t the only ones who still believe in Bitcoin. This week, digital Bitcoin wallet Coinbase raised $75 million in a Series C funding round, with the lineup of investors including the New York Stock Exchange.

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