New York-based Gemini Trust Company, the cryptocurrency exchange founded by the Winklevoss twins, has secured insurance coverage for the digital assets it holds in hot wallets on behalf of its clients.
— Gemini (@GeminiTrust) October 3, 2018
According to the announcement, Gemini has won-over insurers that were previously too cautious to back the digital asset class, due to market volatility and the ever-present risk of an exchange security breach.
However, due to Gemini’s ongoing efforts to lead institutional adoption by focusing on regulatory compliance and stock exchange-level security systems, the digital assets on the platform are insured in a way that complements existing FDIC “pass-through” deposit insurance for users’ fiat currencies.
Gemini notes that this news further widens the exchange’s competitive advantage, as other trading platforms either lack the legitimacy or shy away from the high cost of premiums required to secure custody insurance.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.