The crypto exchange run by the Winklevoss twins – Gemini – has reportedly secured insurance coverage for stockpiled assets.
"After a series of due diligence roadshows with industry-leading insurers, we are pleased to announce that we have secured insurance coverage for the digital assets that we hold on your behalf in our online hot wallet," the statement reads.
According to the company press release, the coverage will be provided by a global consortium of industry-leading insurers and arranged by Aon. The latter offers different services to deal with risks, pension and health payments. The exchange has got additional coverage along with the insurance of the Federal Deposit Insurance Consortium for USD-deposits.
Yusuf Hussain, Gemini’s Head of Risk, noted in the press release that their clients want to enjoy the same insurance level as offered by the traditional financial organizations.
He also pointed out that the insurance companies mostly keep away from the cryptocurrency sector as it is apt to massive hacks entailing huge losses. Among additional reasons, it should be mentioned, weak security, bad internal management as well as policy.
"However, we were able to successfully demonstrate to insurers that Gemini, a New York trust company, is indeed a safe and secure exchange and custodian where customers can buy, sell, and store digital assets in a regulated, secure, and compliant manner," according to the statement.
It is also worth mentioning that the platform expressed plans to launch its own USD-based stablecoin lately. The project has reportedly got the green light from the New York Financial Services Department.