Crypto Exchange Gemini Obtains Insurance For Digital Assets

Announcements, News | October 4, 2018 By:

Gemini, a New York-based crypto exchange founded by the Winklevoss twins, has secured insurance coverage for cryptocurrenices it holds on behalf of clients.

In a press release, the New York-based crypto exchange said the coverage will be provided through a consortium of insurers globally arranged by Aon, a global professional services firm providing a broad range of risk, retirement and health solutions. Gemini’s digital asset insurance coverage will complement the existing Federal Deposit Insurance Corporation (FDIC)-insured US dollar deposits.

Gemini said it was approved for coverage after successfully proving to underwriters that the company is “a leading, best-in-class exchange and custodian.”

“We were able to successfully demonstrate to insurers that Gemini, a New York trust company, is indeed a safe and secure exchange and custodian where customers can buy, sell, and store digital assets in a regulated, secure, and compliant manner,” said Yusuf Hussain, Gemini’s Head of Risk. “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.”

Gemini was founded in 2014 by brothers Cameron and Tyler Winklevoss to build a bridge to the future of money. Earlier this year, the company became the world’s first licensed exchange to offer trading and custody services for ether and Zcash. Last month, it announced that it will be launching a dollar-pegged stablecoin approved by the New York Department of Financial Service (NYDFS).