Gemini launches firm to insure its crypto custody branch
Friday, 01 17 2020, Category: Technology, Country: World
The Winklevoss’ Gemini Exchange has launched an insurance company to cover up to $200 million for Gemini Custody — reportedly the largest amount for any crypto custody service in the world.
Head of risk at Gemini Yusuf Hussain shared the news with Cointelegraph on Jan. 16. The captive insurance company is called Nakamoto, Ltd. and will secure Gemini’s custody business for up to $200 million.
Aiding Nakamoto, Ltd.’s launch were major traditional insurance brokers Aon and Marsh. Gemini’s custodial clients will also reportedly be able to purchase additional insurance from Nakamoto, Ltd. in order to secure their own holdings beyond the general $200 million.
Hussain said the advancement in the company’s custodial coverage will allow a number of Gemini’s institutional clients to continue to meet their own regulatory requirements. He explained that the move “is consistent with Gemini’s approach of being a security-first, compliance-first, and regulatory friendly exchange and custodian.”
Gemini first launched their custody wing in September.
Insurance has been a major barrier to crypto investment services looking to court more risk-averse traditional financial players.
Legendary insurance firm Lloyd’s of London has gotten involved, securing hot wallet holdings for Coinbase as well as Kingdom Trust’s custody business.
Speaking of Gemini’s history with advancing insurance into crypto investments, Hussain pointed to Gemini’s 2018 move to insure hot wallet holdings as further evidence of their desire to provide more security in the industry.