Winklevoss’ Gemini Crypto Exchange Secures Insurance Coverage for Custodied Assets
Cryptocurrency exchange and custodian Gemini Trust Company, LLC (Gemini) has secured insurance coverage for custodied digital assets from lending services firm Aon, according to a press release published Oct. 3.
Founded in 2014 in New York by Tyler and Cameron Winklevoss, Gemini is now the 50th largest digital currency exchange by 24 hour adjusted trade volume, according to data from CoinMarketCap.
Per the press release, Gemini’s digital insurance coverage will complement the already available Federal Deposit Insurance Corporation (FDIC)-insured U.S. dollar deposits. Yusuf Hussain, Gemini’s Head of Risk, said:
“Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions. Educating our insurers not only allows us to provide such protections to our customers, but it also sets the expectation for consumer protection across the crypto industry.”
In July, Aon claimed to occupy 50 percent of the cryptocurrency insurance market, expecting to see more crypto-specific protections catering to the industry. Another insurance brokerage company, Marsh & McLennan, reportedly said that 2018 had been “brisk” for crypto-insurers, revealing that it had formed its first-ever team dedicated to broker policies for blockchain startups.
Last month, Gemini exchange announced that former Chief Information Officer of the New York Stock Exchange (NYSE) Robert Cornish had joined the company. At Gemini, Cornish is responsible for leading technology initiatives and monitoring the deployment of Nasdaq’s SMARTS Market Surveillance technology, which will let Gemini control all of its order books and Gemini Auctions.
In April, Gemini revealed that it would begin offering crypto block trading outside of their regular order books. Investors that want to trade on the Gemini Block Trading marketplace will be able to buy and sell large amounts of cryptocurrencies.
In December last year, Gemini partnered with the Chicago Board Options Exchange (CBOE) to launch Bitcoin (BTC) futures, which let them bring the traditional market instruments into the crypto space.