Crypto Assets on Winklevoss Gemini Exchange Are Now Insured
Crypto exchange Gemini has obtained insurance coverage for the digital assets it holds in custody, it announced Wednesday.
The Gemini Trust Company said in a press release that its insurance will be provided through a consortium of insurers under a system set up by global professional services firm Aon, which already provides “a broad range of risk, retirement and health solutions.”
According to the release, the exchange received coverage after it could prove to underwriters that it “is a leading, best-in-class exchange and custodian.”
This insurance comes on top of the Federal Deposit Insurance Corporation-insured dollar deposits that the exchange holds.
Gemini head of risk Yusuf Hussain said in a statement that “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.”
The news comes just weeks after the exchange announced it was launching a dollar-pegged stablecoin approved by the New York Department of Financial Services.
Gemini is backing its stablecoin with dollar holdings similarly insured through the FDIC, it said last month.