The New York-based Gemini cryptocurrency exchange is one of the more popular ones on the market, having been launched by the Winklevoss twins – of former Facebook fame. The platform is similar to that of Coinbase or Binance in that it supports a wide variety of cryptocurrency assets, and it’s looking to expand its feature offerings now, according to a press release from the group.
Now, Gemini is launching what it calls Nakamoto, Ltd, which exists as a cryptocurrency custody insurance extension for the exchange. Thanks to this, the platform now has the highest limit of cryptocurrency insurance coverage of any cryptocurrency manager in the entire world: $200 million in coverage. This is on top of the traditional insurance offered to Gemini users on its traditional exchange platform. According to brother Cameron Winklevoss, the President of Gemini, lack of insurance is one of the largest barriers of entry to the cryptocurrency space:
“Insurance is one of the main barriers to crypto mass adoption. Gemini has created a captive insurance company to address this. 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.”
Of course, this is possible thanks to the fact that Gemini is regulated by the New York State Department of Financial Services (NYDFS).
Yusuf Hussain, the Head of Risk at the exchange, also spoke on the matter:
“Currently, the crypto industry lacks insurance coverage similar to that available in traditional financial markets. Gemini recognized this gap and collaborated with two of the world’s largest insurance brokers, Aon and Marsh, to solve for this.”