Gemini Exchange Insures Crypto Assets through Aon

Gemini Exchange, a leading digital asset exchange owned by the Winklevoss twins Cameron and Tyler, announced that the company has secured insurance coverage for digital assets in its custody through a global consortium of industry-leading insurers. The insurance is arranged by Aon PLC, a London, UK-based global professional services firm that provides a wide range of risk, retirement, and health solutions.

Gemini's Crypto Assets Protected by Insurance

Gemini was approved for coverage after successfully demonstrating to underwriters that the company is a “leading, best-in-class exchange and custodian,” according to a company press release. The insurance coverage for the digital assets further supports the necessary measures for consumer protection, asset storage, and transactions on the Gemini platform.

The USD fiat funds all of the Gemini customers that were already eligible for the standard Federal Deposit Insurance Corporation (FDIC) insurance, subject to the applicable limitations. The digital asset insurance coverage extends to the crypto assets held by the Gemini exchange for its customers.

 “Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions,” 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.”

The development comes on the back of the popular exchange launching its own dollar-pegged stablecoin last month, which was approved by the New York Department of Financial Services. Gemini is backing the stablecoin with fiat currency (US dollar) reserves similarly insured through the FDIC.

(For more, see Gemini Launches NYDFS-Regulated Dollar-Pegged Crypto.)

Emerging Crypto Asset Ecosystem

The growing adoption of cryptocurrencies has been accompanied by an increasing number of thefts and hacks on the digital assets, as had made headlines recently. As a result, the business of offering safe custody solutions for securing the crypto assets has flourished. Established firms like Goldman Sachs are reported to be entering the space to offer secure storage and custody solutions for digital assets to institutional clients.

(For more, see Goldman Sachs Is Planning a Crypto Custody Service.)

Additionally, the protection of digital assets through insurance has also emerged as a big business opportunity. Earlier in June, Aon claimed to control around 50 percent of the crypto-insurance market, according to CoinTelegraph. Marsh & McLennan, another leading broker, said that 2018 has been “brisk” for crypto-insurers, and premiums for offering necessary insurance for crypto-related businesses run at over five times the average insurance costs of a traditional corporate.

(See also, How The Winklevoss Twins Store Their Crypto Fortune?)

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