Gemini Trust Company, the parent company of the Gemini exchange, founded by Cameron and Tyler Winklevoss, has announced in a new press release that it has secured insurance coverage for custodied digital assets through a global consortium of industry-leading insurers through professional services firm Aon. The new coverage is an addition to the already available FDIC-insured US dollar deposits covering Gemini.
“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.”
New York-based cryptocurrency exchange Gemini was founded by Cameron and Tyler Winklevoss in 2014. More recently, the brother’s have been playing an essential role in bringing cryptocurrency to Wall Street. It’s been rumored that Gemini, in partnership with Nasdaq, will begin listing cryptocurrencies on the Nasdaq sometime in 2019. Gemini is currently the 50th-largest digital currency exchange by 24-hour adjusted trade volume.
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Wednesday’s press release explains that Gemini was approved for coverage from Aon after successfully demonstrating to underwriters that the company is “a leading, best-in-class exchange and custodian.” It states, “the digital asset insurance coverage further bolsters confidence and protection for consumers transacting on the Gemini platform.”
A Bloomberg report from July reveals that Aon appears to control an estimated 50 percent of the cryptocurrency insurance market. The firm is paving the way for innovative new protection services for digital assets.
Gemini’s new custidied digital asset coverage is likely intended to further legitimize the exchange in the eyes of the SEC and institutional investors within the US. After being denied for a second time by the SEC for a proposed Bitcoin ETF, the Winklevoss Twins have since doubled the size of Gemini’s staff and hired former New York Stock Exchange Chief Information Officer Robert Cornish as Gemini’s first chief technology officer.
“Wall Street is taking cryptocurrencies seriously, however, the vast majority of Wall Street firms are still not participating in the cryptocurrency market, which remains primarily a retail driven market,” said Tyler Winklevoss. “This will change over time, but it will take time.”
The Winklevosses also formed the Virtual Commodity Association this year, a non-profit group which serves as a self-regulatory organization that can police digital-currency markets and custodians.
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