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Cryptocurrency exchange Gemini has announced the launch of its own insurance company that will provide insurance coverage of up to $200 million to Gemini Custody.
Called Nakamoto, the captive insurance company is licensed by the Bermuda Monetary Authority (BMA). Gemini said that it is the world's first captive to insure crypto custody.
According to a press release, the launch of the new company was supported by leading insurance brokers, Aon and Marsh.
"Currently, the crypto industry lacks insurance coverage similar to that available in traditional financial markets," said Yusuf Hussain, Head of Risk of Gemini. "Gemini recognized this gap and collaborated with two of the world's largest insurance brokers, Aon and Marsh, to solve for this."
Hussain told Cointelegraph this advancement in Gemini’s custodial coverage will enable its institutional clients to continue meeting their own regulatory requirements. He said that the move “is consistent with Gemini’s approach of being a security-first, compliance-first, and regulatory friendly exchange and custodian.”
In addition to the coverage provided by its custody insurance solution, Gemini said that its customers can now buy additional insurance for their segregated crypto assets to provide even greater coverage.
“Obtaining meaningful insurance in the crypto industry remains a challenge, and our captive will help to increase our insurance capacity and move the industry forward,” Gemini president Cameron Winklevoss said.
Gemini was founded in 2014. Five years later, the company launched its own custody service called, Gemini Custody, which is regulated by the New York Department of Financial Services (NYDFS).
“From day one, Gemini recognized the need for a world-class custody solution that is secure, compliant, and easy to use for individuals and institutions around the world,” Tyler Winklevoss said.
