Gemini Trust Company has taken bold steps to provide robust coverage for cryptocurrencies in its custody.
In a blog post, the highly prominent Gemini Trust Company revealed the launch of Nakamoto Limited. All over the crypto-verse, fans and enthusiasts alike are commenting on it.
For the unaware, Nakamoto Limited is the first captive insurance company that’s licensed by the Bermuda Monetary Authority (BMA).
Possible benefits
The captive insurance company helps to ensure the custody of cryptocurrency. As well as help Gemini Custody grow its insurance capacity.
That said, Gemini Custody reportedly has roughly two hundred million dollars in insurance coverage. Users should note that this remains the biggest limit of insurance coverage bought by any Cryptocurrency custodian.
Cameron Winklevoss spoke on the development. He mentioned that insurance is an important factor for the mass acceptance of cryptocurrency. That’s why the company launched the initiative.
Notably, the New York State Department of Financial Services (NYDSF) regulates Gemini Custody. In addition, users get the opportunity to purchase extra insurance for any of their segregated digital assets. Also, hot wallet insurance coverage exists. The U.S. dollar deposits held at Gemini also remain eligible for FDIC “pass-through” deposit insurance.
Collaboration with Marsh and Aon
Yusuf Hussain, the head of the risk department at Gemini, mentioned that the company quickly recognized the lack of insurance coverage. Thus, initiating a collaboration with Marsh and Aon.
The company worked with Aon in a bid to incorporate Nakamoto in Bermuda. Having Aon as the captive manager of Nakamoto, the company gets the chance to tap into bigger insurance markets.
Besides, the Marsh Digital Asset Risk Transfer team provides a huge custody insurance solutions. Thus, giving Gemini a protected and regulated custody provision.
Gemini is a New York trust company that’s subject to the capital reserve and cybersecurity requirements. As well as, the banking compliance standards set forth by the New York State Department of Financial Services and the New York Banking Law. The cryptocurrency exchange started operations in 2014.
