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Gemini Expands its Product Offering as it Adds Insurance for Cryptocurrency
Oct 09, 2018
After being rejected of a Bitcoin ETF twice, Winklevoss twins promoted Gemini continues to add other crypto product in its offering to stay in line with its vision of being a crypto giant. According to the recent announcement Gemini has announced that the exchange has partnered with leading insurers to provide coverage on custodial digital assets.
Gemini educates insurers on the risk surrounding cryptocurrencies
Effective since October 1, 2018, Gemini’s new insurance coverage is provided to all the digital assets that are held in Gemini’s custodial service. Aon, a leading global professional services firm providing a broad range of risk, retirement, and health solution, has arranged the partnerships and has helped in putting this product together for Gemini “through a global consortium of industry-leading insurers.”
According to the press release, Gemini was permitted for coverage after successfully representing to underwriters that the company is a leading, best-in-class exchange and custodian. It had to educate them to understand the risk associated with cryptocurrencies and how Gemini provides the best solutions to protect its customers against the risks. The digital asset insurance coverage further bolsters confidence and protection for consumers transacting on the Gemini platform
Yusuf Hussain, Gemini’s Head of Risk. Was quoted saying
“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”.
While the security behind cryptocurrency custodianship has firmed up greatly, such as multi-signature features, exchanges still want to firm up doubt with insurance for digital assets still highly sought after when exchange hacks are regular news. Insurance firms could win big, and some are launching with specific cryptocurrency packages.
Gemini adds another milestone on its path to becoming a crypto giant
The new addition of insurance-backed custodianship marks a clear trend that Gemini focuses on adding services that legitimize the cryptocurrency trading industry. This step definitely is in line with Gemini’s long-term vision of becoming a “one-stop” for all crypto related offerings. Most of Gemini’s developments bring features that are consistent with traditional financial institutions who have gone to become huge institutions.
Gemini has generated a lot of attention recently with the launch of new products and services. The company launched a new stable coin (GUSD) touted as more transparent and auditable than current coins. It runs a fairly successful cryptocurrency exchange and has been trying its best to get a Bitcoin ETF through even after being rejected twice. Additionally, the Gemini’s Winklevoss twins are very active in bringing cryptocurrencies to Nasdaq and educating Wall Street.
With Gemini’s addition of crypto insurance, crypto enthusiasts now find themselves safe against all the malicious activities that are pretty rampant in the industry. As this new product rolls out, Gemini also steps up competition against Circle, which also is working on a similar vision which Gemini is working on.