The Winklevoss’ brothers Gemini has launched an insurance company which will cover up for up to $200 million for Gemini Custody which is reportedly the largest amount for any crypto custody service in the world. As Gemini launches an insurance company, the head of risk at the exchange named Yusuf Hussain shared the news and said that the captive insurance company is called Nakamoto, Ltd. and will secure the custodial business of the exchange for up to $200 million.Aiding Nakamoto Ltd. and its launch, there have been a lot of traditional insurance brokers joining this new journey. Aon and Marsh were among them – and the custodial clients of Gemini will also reportedly be able to purchase additional insurance from Nakamoto Ltd. in order to secure their own holdings beyond the general $200 million.According to Hussain, Gemini launches an insurance company as an advancement in its coverage – allowing the institutional clients to continue to meet their own regulatory requirements. He explained that the move “is consistent with Gemini’s approach of being a security-first, compliance-first, and regulatory friendly exchange and custodian.”As a reminder, Gemini initially launched their custody wing in September, when it was in the crypto news for being one of the most impressive exchanges for custodial services.Meanwhile, insurance is still a major barrier to crypto investment services looking to court more risk-averse traditional financial players. The legendary insurance firm Lloyd’s of London has gotten involved, securing hot wallet holdings for Coinbase and the Kingdom Trust custody business.As Gemini launches an insurance company, we can definitely relate to the exchange’s history with advancing insurance into crypto investments – and specifically the 2018 move to insure hot wallet holdings as further evidence of their desire to provide more security in the industry.
“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,” the president of Gemini Cameron Winklevoss added.
In the end, Gemini is not the first to launch an insurance option. Before this, Ledger Vault which is the custody arm of the hardware manufacturer Ledger did the same and acquired a crime insurance policy which supports them with a coverage of up to $150 million in crime losses.