The crypto exchange Gemini announced that customer assets are now covered by insurance. It comes through a consortium of global insurers that were organized on the part of Aon.
Available insurance for digital assets
The digital cryptocurrency Gemini notified customers that insurance for their digital assets is now made available. According to some news, it was arranged by a professional services firm which is called Aon, who actually organized a collective of leading insurers.
This new virtual asset insurance coverage currently stands together with FDIC insurance for U.S. Dollars.
Yusef Hussain, the head of the risk at Gemini, in the Medium post on the 3rd of October wrote about how the company has had the ability to secure coverage after a series of due diligence roadshows with industry-leading insurers.
He also noted how Gemini had the ability to successfully show investors how it was a secure and safe exchange, and custodian, for users to buy, as well as sell and store virtual currencies.
The responses he gave on the Medium post were positive in general. One person has noted how the news was great for people that are on f the fence with crypto-investment in the U.S. and another one congratulated Gemini for securing coverage with a custodial model economically.
Insurers were skeptical about the crypto industry insurance
As Hussain stated, a lot of insurers have shied away from extending coverage into the crypto world, as they had some concerns about hacks and perceptions about poor security and internal control standards.
However, he says that consumers are looking for the same levels of insured protection which they are used to be afforded by traditional financial institutions.
Some of them even speculate that Gemini was working to secure insurance coverage so to demonstrate to current, as well as potential customers how they stand as a regulated entity in a crypto world with many legal grey areas.
The Winklevoss twin brothers push forward
The announcement of the insurance seems to be an excellent beginning to the month for the Gemini exchange, as well as to the co-founders of it, the twins Cameron and Tyler Winklevoss, who received approval from New York regulators in September for their stablecoin.
Earlier in September, it was reported how the Gemini dollar, tied to the USD at a 1:1 ration, is going to be backed by the firm State Street.
The crypto also drew the approval of the founder of Bitcoin Foundation, named Charlie Sherm, who remarked how the twins Winklevoss had built what would come to be the “Golden Gate Bridge, the Verrazzano Bridge” in the field. He also stated that the stablecoin is going to span across decades.
Before the tweet in the Medium post on the 3rd of October, Gemini actually made a note of how the Gemini dollar is now officially listed on the OEX.com digital exchange.
The exchange seems to be gearing up for some major competition with some other leading companies, such as Coinbase and Bithumn in the UK after reporting by the Financial Times alleged the platform had hired consultants in order to try and hash out an expansion project in the region.
Now, Coinbase secured an e-money license from the regulators of UK, and it enjoys a banking partnership with Barclays. Currently, Bithumb has some plans to create an office in the UK by the end of this year.