Banking Giant Aon to Provide Insurance Coverage for Gemini’s Digital Asset Custody Business
International banking providing Aon will now offers insurance for four cryptocurrencies offered by Gemini, the Winklevoss Brothers’ owned cryptocurrency exchange and custodian, as per an official announcement on October 3, 2018.
Gemini Increases Credibility
The New York-based entity is taking huge strides as a credible player in the rising crypto-finance market, the likes of which is dominated by rival exchange Coinbase and crypto payments provider Circle.
As per the announcement, the deal with Aon applies to all of Gemini’s custodied digital assets, meaning funds lost on the company’s exchange product are not covered under the terms of insurance. Interestingly, Gemini now offers two insurance coverages for clients, with the other being FDIC-insured U.S. dollar deposits introduced in early 2018.
Aon provides global risk management, health and retirement policies, and professional services to millions of businesses across the globe. In July 2018, reports suggested the firm was among the few conglomerates exploring cryptocurrency insurance packages for startups and investors, with Aon claiming to control over 50 percent of the world’s cryptocurrency insurance market.
Aon’s Trust in Crypto
Gemini’s insurance will not be wholly-provided by Aon. Instead, the latter has assembled a global consortium of “industry-leading insurers” to provide coverage for Gemini’s custodian business.
The release noted Gemini was approved for insurance after a careful examination of its business practice. The company also successfully provided proof to underwriters about the superiority of its custodian product, relative to comparable offerings.
With the insurance coverage, wealthy retail investors and institutions can feel more confident about storing their digital assets with Gemini, of which Head of Risk Yusuf Hussain elaborates:
“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.”
A New York Trust-recognized company, Gemini offers investors a platform to buy, sell, and trade bitcoin, ether, and zcash. In addition, the firm provides investors with exposure to bitcoin via its Chicago Board of Exchange-guaranteed futures contract, launched in December 2017.
In September 2018, Gemini launched the “world’s first regulated stablecoin,” called the Gemini Dollar. The product offers the stability and creditworthiness of the USD with the traceability of blockchain technology and oversight by U.S. regulators.
