Gemini exchange to offer insurance for custodied assets
The Gemini Trust Company, which operates the Gemini exchange and custody service, has announced that its clients can now purchase insurance for their assets. Through a partnership with lending services firm Aon, insurance policies are available to cover investors' assets, which could go a long way to giving them the confidence they need to further invest in the cryptocurrency space.
Gemini Head of Risk Yusuf Hussain explained, 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.”
Gemini already overs a certain amount of coverage. As a regulated entity, it is able to protect investor assets through the Federal Deposit Insurance Corporation (FDIC).
Crypto insurance is a growing business. Aon reported in July that it controls about 50% of the market, but that it anticipates substantial more growth in the industry. Insurance brokerage firm Marsh & McClennan has faith in the segment, as well, and has launched its own division dedicated to blockchain insurance policy writing.
Gemini continues to advance substantially in the crypto ecosystem. It recently hired Robert Cornish, a former executive with the New York Stock Exchange, to oversee its technology initiatives. It has also begun to offer crypto block trading outside its regular order books, giving investors the ability to purchase large amounts of digital assets in blocks such as $100,000, €100,000 or 10,000 Bitcoin (BTC).
Just recently, the company announced that it was introducing a new cryptocurrency. The Gemini Coin is a stablecoin that is backed by the US dollar and is designed to compete with other stablecoins, such as Tether and Paxos.