The Gemini Trust Company, co-founded by twin brothers Cameron and Tyler Winklevoss, has obtained insurance coverage for custodied digital assets through a global consortium of industry-leading insurers and arranged by Aon, a global player in risk, retirement and health solutions. Gemini is one of the leading cryptocurrency exchanges and custodians that allows to buy, sell, and store digital assets such as Bitcoin, Ether, and Zcash. Through this insurance coverage, these digital assets will be protected.
Gemini’s digital asset insurance coverage is in addition to the already available Federal Deposit Insurance Corporation (FDIC)-insured U.S. dollar deposits that the exchange holds. Gemini said it was approved for digital asset insurance coverage after successfully demonstrating to underwriters that the company is a leading, best-in-class exchange and custodian. "The digital asset insurance coverage further bolsters confidence and protection for consumers transacting on the Gemini platform," it added.
Yusuf Hussain, Gemini’s Head of Risk said:
“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.”
Last month, Gemini launched the regulated stablecoin, the Gemini dollar, that combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators. The stablecoin with ticker symbol 'GUSD' is built on the Ethereum network according to the ERC20 standard for tokens. The users can convert U.S. dollars in their Gemini account into Gemini dollars and withdraw them to an Ethereum address they specify. Gemini also filed a new patent last month with the U.S. Patent and Trademark Office (USPTO) for securely storing digital assets. The patent named “Systems and methods for storing digital math-based assets using a secure portal” includes a new method that allows for the division of a digital asset account into a plurality of private key segments, providing more secure technology for cryptocurrencies.
The cryptocurrency millionaire twin brothers have also been trying to get a Bitcoin (BTC) Exchange Traded Fund (ETF) approved for over a period now. But the U.S. Securities and Exchange Commission (SEC) for the second time rejected their proposal in July of this year. However, one SEC Commissioner named Hester M. Peirce officially dissented the SEC's decision. The SEC has not approved any Bitcoin ETF till date. Market observers, however, are hopeful that it would approve the proposal of VanEck-SolidX Bitcoin ETF soon, given that most comments are in favor of it.