Crypto exchange Gemini secures insurance coverage for custodied digital assets
Thu, 04 Oct 2018, 04:49 am UTC
Cryptocurrency exchange Gemini has announced that it has secured insurance coverage for custodied digital assets that it holds on behalf its customers in its online hot wallet through a global consortium of industry-leading insurers and arranged by leading insurance firm Aon.
In its official release, Gemini said that it was approved for coverage after it successfully demonstrated to insurers that it is “a safe and secure exchange and custodian where customers can buy, sell, and store digital assets in a regulated, secure, and compliant manner.”
“This new coverage complements existing FDIC “pass through” deposit insurance that your fiat funds (U.S. dollars) are eligible for,” Yusuf Hussain, Head of Risk at Gemini, wrote in a blog post.
Founded in 2014, Gemini is a New York trust company that is subject to the capital reserve requirements, cybersecurity requirements, and banking compliance standards set forth by the New York State Department of Financial Services (NYDFS). It allows customers to buy, sell, and store a number of digital assets. In fact, it is the first licensed exchange to offer trading and custody services for ether and Zcash.
More recently, the NYDFS authorized Gemini to offer stablecoin, pegged to the U. S. dollar. Gemini launched the Gemini dollar, an ERC-20 token that combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators.
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