Cryptocurrency exchange Gemini Trust Company, LLC has secured insurance coverage for its custodied digital assets through lending services firm Aon.
Insurance Partnership with Aon
According to an October 3 press release, Gemini Trust Company—a New York-based crypto exchange and custodian founded in 2014 by twins Tyler and Cameron Winklevoss—now offers insured digital asset storage. This insurance complements Gemini’s existing FDIC-insured U.S. dollar deposits.
Yusuf Hussain, Gemini’s Head of Risk, emphasized the growing demand for institutional-grade safeguards:
"Consumers expect insurance protections on par with traditional financial institutions. Educating our insurers allows us to deliver this security while advancing broader trust in crypto."
Market Context
- Aon claimed 50% market share in crypto insurance as of July 2019, anticipating increased industry protections.
- Competitor Marsh & McLennan reported 2018 as a breakout year for crypto insurers, forming a dedicated blockchain insurance team.
Gemini’s Market Position
Ranked as the 50th-largest digital asset exchange by adjusted 24-hour trading volume (CoinMarketCap), Gemini has expanded through strategic initiatives:
- Leadership: Hired NYSE ex-CIO Robert Cornish (September 2019) to oversee technology and market surveillance.
- Block Trading: Launched large-volume crypto trades (April 2019) for BTC and ETH.
- Futures Collaboration: Partnered with CBOE (December 2018) to introduce Bitcoin futures.
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FAQs
Q: How does Gemini’s insurance work?
A: It covers custodied digital assets, supplementing FDIC protections for cash deposits.
Q: Who underwrote Gemini’s insurance?
A: Aon, a major global insurance broker specializing in crypto risks.
Q: Can users trade insured assets on Gemini?
A: Yes—insurance applies to custodied assets, while trading occurs via the exchange’s markets.
Q: What makes Gemini stand out among exchanges?
A: Regulatory compliance, institutional partnerships, and insured custody services.
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