Cryptocurrency exchange Gemini has obtained additional security for digital assets it holds. This additional crypto insurance came after a deal with a global professional services company.
The Gemini Trust Company made another step in assuring users that their crypto assets are safe. The company said in an official press release that they had insured coverage for the digital assets that were in their online hot wallet. Insurance comes through a global consortium of industry-leading insurers, arranged by Aon, a global professional services firm.
This crypto insurance comes as an addition to the Federal Deposit Insurance Corporation–insured dollar deposits that the exchange holds. In its release, Gemini stated that they had received coverage “after successfully demonstrating to underwriters that the company is a leading, best-in-class exchange and custodian”.
Yusuf Hussain, Gemini’s Head of Risk, said that protection was very important for consumers transacting on the Gemini platform:
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.
Will Additional Crypto Insurance Become a Trend?
According to Mr. Huassain, as of recently, insurers have been hesitant to insure the crypto industry due to a large number of hacks. Therefore, he thinks that this is the main reason why many crypto exchanges faced a high cost of premiums. Experts have also commented on this change:
Custody and insurance have been two of the biggest issues preventing institutional adoption of #Crypto, now Gemini has both. Last year this would have moved #BTC $2000 in a candle, today crickets. #cryptocurrency #ETH #LTC https://t.co/aivJGb7K76
— Evan Rapoport (@evanrapp) October 3, 2018
It’s interesting that the additional crypto insurance deal came after the announcement of Gemini dollar (GUSD) stablecoin. Gemini co-founder Cameron Winklevoss said that “Gemini dollar combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators.”
Consequently, the company officials are trying to assure everyone that Gemini is now one of the safest crypto exchanges.