Gemini now offering digital asset insurance for customer funds
Winklevoss’ Gemini Trust Company, LLC has obtained insurance coverage from Aon for digital assets stored online.Tweet this
This week, New York-based digital asset exchange Gemini has announced new insurance coverage for customer funds held in their online hot wallet.
This new coverage has been arranged by global professional services firm Aon, and complements existing FDIC “pass-through” deposit insurance which applies to the interests of owners or beneficiaries in a qualified fiduciary or custodial account.
Gemini’s Head of Risk Yusuf Hussain said:
“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.”
Up to this point, most cryptocurrency exchanges have had trouble acquiring coverage due to a number of poor security standards which characterize much of the industry.
Additionally, over the last few years, there have been a large number of high-profile hacks that have resulted in catastrophic losses to customer funds stored on an exchange, which have also signified a higher risk to insurance agencies.
While most customer funds are stored in Gemini’s cold-storage wallet, they have outlined the security measures they take to secure customer funds in their online hot wallet, helping them demonstrate to insurers that the exchange is a safe place for people to buy, sell, and store digital assets in a regulated, secure, and compliant manner.
You can a full breakdown of how Gemini stores customer funds here.
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