Shortly after launching its own stablecoin, New York based cryptocurrency exchange Gemini has now announced its crypto insurance offering. On Wednesday, Oct. 3, Head of Risk at Gemini Yusuf Hussain wrote in a blog post that the platform will provide digital asset insurance coverage for its users. The protection will be valid for all assets held in Gemini’s online hot wallet.
Building the Future of Money
Hussain suggested that Gemini has fostered its commitment to building the future of money by providing a secure platform to buy and sell cryptocurrencies. The coverage of assets in the platform’s wallets complements the FDIC “pass-through” deposit insurance that users’ US dollar funds are eligible for.
The blog post states that because cryptocurrency exchanges have been rocked by several high-profile hacks, insurers have denied coverage to the industry. As a consequence, exchanges and custodians would have to pay very high costs to insurers willing to work in the industry. This created a roadblock to crypto’s development.
Hussain goes on to write about Gemini’s efforts:
“[W]e 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.”
Who Is Insuring Users’ Funds?
The crypto funds of Gemini users will be insured by a consortium of insurance providers arranged by Aon, a global professional service firm that provides risk management solutions, as well as health and retirement solutions.
It is evident that consumers willing to invest in the crypto industry can be pushed away by the lack of regulations, and the absence of proper safeguards should things go wrong. With the new insurance plan, investors can be sure that they are investing in a secure environment and have the necessary insurance available to protect their funds.
This year, Gemini has made huge progress in the crypto world. The company launched the first Bitcoin futures contract with CBOE earlier this year. It failed to obtain an ETF approval from the Securities and Exchange Commission twice but went on to launch a dollar-pegged regulated stablecoin, as well as this new insurance plan for consumers.
Gemini Exchange Will Now Provide Digital Asset Insurance via Aon was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.