Gemini opened an insurance company to cover its clients’ crypto assets
Cryptocurrency exchange Gemini this Thursday announced the launch of its own insurance company Nakamoto.
Nakamoto will operate on the model of a “captive” insurance company – such a company belongs to the parent structure and serves only its risks. The amount of insurance coverage for clients’ assets in cold wallets of the Gemini Custody service will amount to $ 200 million. According to the exchange, this is the largest collateral available in the cryptocurrency industry for the custody service today. Coinbase has insurance for $ 255 million, but in its case it covers hot wallets.
Nakamoto was launched in partnership with leading insurance brokers Aon and Marsh. Aon acts as a captive manager and helped Gemini obtain a license for its new business in Bermuda. This jurisdiction traditionally attracts insurance companies using a similar model due to its favorable regulation..
Gemini President Cameron Winklevoss said that insurance is one of the main barriers to the massive adoption of cryptocurrencies. “Securing adequate coverage remains one of the major challenges for the cryptocurrency industry. Our captive company will help us expand our own insurance capabilities and help further advance the industry, ”he added..
Gemini Custody, a custodian service for institutional investors, was launched in September.
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