Gemini Secures Insurance Coverage For Crypto Assets
Gemini, a crypto- exchange and custodian owned by Internet entrepreneur twins Cameron and Tyler Winklevoss, has secured insurance coverage for digital assets held on behalf clients in their online hot wallet.
The insurance coverage is provided by a global consortium of industry-leading insurers and arranged by professional services firm Aon, which provides risk, retirement and health solutions.
The coverage complements the insurance already provided by the Federal Deposit Insurance Corp. (FDIC) for U.S. dollar deposits. This will provide Gemini clients with a safe and secure platform to buy, sell, and store digital assets in a regulated, secure, and compliant manner.
Gemini secured the insurance coverage after a series of due diligence roadshows with industry-leading insurers, who are generally hesitant to insure the crypto industry due to a large number of high-profile hacks that have led to catastrophic losses over the years.
Further, insurers are wary of the poor security standards, internal controls, and policies and procedures that have characterized much of the crypto industry. These risks also lead to the prohibitive high cost of premiums for insuring these digital assets.
Last month, Gemini had launched a U.S dollar-backed regulated stablecoin called “Gemini dollar,” which has the backing of the New York Department of Financial Services (NYDFS).
The move to launch the stablecoin came after the Winklevoss twins faced rejection from regulators for its proposed Bitcoin exchange-traded fund (ETF) for the second time in July.
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