Digital asset exchange and custodian, Gemini Trust Company LLC has reportedly secured insurance coverage for its custodian digital assets via a global consortium of industry-leading insurers formed by Aon, a company that offers a broad range of risk, retirement and health solutions globally. Gemini already has U.S. dollar deposits insured with FDIC.
The company, before availing the coverage, was required to prove its steadiness and leadership in the exchange and custodian community to the underwriters. The coverage will enable the company to foster its relationship with the existing consumers and add new customers.
Gemini’s Head of Risk, Yusuf Hussain, said that consumers are always on the look of such kind of coverage that the company has recently obtained. He further added that the coverage would allow the company to empower the insurers as well as protect the company and its customers. With this additional protection, the coverage would set the expectation of the consumers for the crypto market quite high.
The New York-based Gemini is subject to compliance set by the NYDFS about capital reserve requirements, cybersecurity requirements, and banking. Two brothers, Cameron and Tyler Winklevoss, founded Gemini in 2014 with the focus to create a channel for the future money.
The company collaborated with Cboe Futures Exchange, LLC to launch a first-of-its-kind Bitcoin futures contract last year in December and is subsequently known as a recognized company for offering such services. It is recognized as the world’s first licensed exchange in the world for making available trading and custody services for cryptocurrencies such as Ether and Zcash. This year in September, the company launched the Gemini dollar which is now recognized as the world’s first regulated stablecoin. The Gemini dollar amalgamates creditworthiness and the stability of the US dollar price with blockchain technology supervised by the US regulators.
The news of Gemini obtaining shows a positive sign of growth for the exchange. The exchange is already considered to be a safe portal for intermediaries that are safe, especially in the legal framework. In September, the company was granted an approval from the state of New York, for the Gemini Dollar. The future of the company appears to be secure considering the growing competition in the market.
Aon on the other side is a leading professional service firm offering solutions related to risk management, health, and retirement. The latest development is likely to encourage more people to invest in the crypto market as during the second quarter of 2018 investors have expressed a lack of confidence in the market. Gemini’s achievement is great news for the crypto market as custody and insurance had been two major obstacles in the crypto market. The company has successfully overcome the obstacle by providing a new platform for the crypto market which is expected to see investors from the globe. The current investors will further feel confident about their investment in the crypto market after the new move from the company.