Yesterday Gemini, one of the largest cryptocurrency exchanges, obtained insurance to cover the digital assets it holds in custody.
As revealed in a press release, this was made possible thanks to a global consortium of insurers called Aon.
Gemini is a centralized exchange and that means that it holds the users’ cryptocurrencies. In case of hacker attacks its customers could lose their assets. For this reason, Gemini wanted to give more security, taking out insurance in case of hacker attacks or other problems that could undermine the security of funds.
Gemini had already been insured by the FDIC for deposits in US dollars in the past.
“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”, explained Yusuf Hussain, Head of Risk Management at Gemini.