Cryptocurrency exchange Gemini Trust Company LLC recently made an announcement of getting insurance coverage for its custodian assets. Gemini Trust Company co-founded by Tyler and Cameron Winklevoss told the insurance will be offered by a consortium of the insurer led by the international lending services firm Aon.
This announcement also says that the exchange is managed to convince Aon for the coverage after it proved the underwriters that it is a leading and custodian to the users. On securing the insurance for its wallet, the head of the risk at Gemini Trust Yusuf told this mission is to build the future of the money by bolstering their commitment to offering the users with a secured platform to sell purchase and keep storing the digital assets.
This insurance comes on the top of the Federal Deposit Insurance Corporation that insures dollar deposits held by the Gemini Exchange. Yusuf said that the consumers are looking for the same levels of insured protection for their currencies in financial institutions. He also told that they are educating their insurers to allow to provide such protections and also sets the expectation for the consumer protection across the crypto industry.
International insurers are not showing interest in ensuring the crypto market. It is done only because of the hacks and the external attacks.
In this year, many of the hacking events heard. The crypto world has faced monumental losses of the investor’s funds due to the poor security and the protections. Insurers are not willing to offer the coverage, or the premium is too high for the exchanges to afford.
Big names from the insurance sector like AIG, Chubb, Allianz and other are considered out options to cover the crypto industry. Insurance coverage firm Aon maintains to occupy 50 percent of the cryptocurrencies. It is also working on different crypto- insurance security protections that cater to this industry.
Gemini Trust Company has been taking several initiatives to bring new crypto products and the services to their customers. The exchange is making sure to create a favorable environment for investors to participate in the crypto world.
This Gemini Trust company announced the launch of its crypto service. This service was targeted at the institutional investors who want to purchase or sell a large number of digital assets. The exchange launched its dollar-pegged stable coin named Gemini Dollar.
Four cryptocurrency exchanges promised to support Gemini trust company’s proposal of creating a self- regulatory and the rules firm to raise the standards for the cryptocurrencies. It has been called as the virtual association working group; its primary goal is to present norms, rules, and regulations for the cryptocurrency and the blockchain world as well as to develop new regulatory standards.
Gemini, in partnership with the Cboe Futures Exchange, LLC, launched the first-ever bitcoin futures contract in December of 2017. Gemini is also the world’s first licensed exchange in the world to offer trading and custody services for ether and Zcash. In September of 2018, Gemini launched the world’s first regulated stablecoin, the Gemini dollar that combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators.