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Gemini’s Insurance for Their Custodial Service

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One of the things that make investors remain optimistic at this point despite a bearish market is the possibility of having institutional investors in the picture. These institutional investors can provide fresh capital for a currently struggling crypto niche. Among the things that could potentially invite institutional investors is a custodial service for digital assets. Coinbase has already done it.

But this time around, Gemini is taking it a notch higher. According to Gemini, in their press release, the exchange has partnered with different insurers that will provide coverage on custodial digital assets.

According to the press release, effective on October 1, 2018, Gemini’s custodial service will be including insurance coverage. This is a big step for the company. Aon, which is the leading global professional service company that provides different types of risk retirement and health solution arranged the partnerships. According to a statement by Yusuf Hussain, who is Gemini’s Head of Risk, “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”.

More Developments From Gemini

Gemini has been making news lately as it was able to launch a variety of different products. Among the latest was the new stable coin (GUSD). It was considered as a transparent and auditable than other coins available today. This plans to address the volatility of cryptocurrencies. And also, the Winklevoss has been trying hard in order to get cryptocurrencies into Nasdaq.

Cameron and Tyler Winklevoss have also attempted to submit their Bitcoin ETF application. Unfortunately, the Winklevoss-led Bitcoin ETF applications have been declined twice by the US Securities and Exchange Commission. The latest was declined mainly because of the possibility of price manipulation.

Legitimacy to Cryptos

What does it mean for the crypto niche? An insurance-backed custodianship is considered good news since it can further legitimize the industry. And what Gemini is doing is provide features that are already present in traditional financial institutions. Considering security issues in the crypto industry, this is a good way to bring peace of mind for a lot of people.

It is undeniable that the security behind crypto custodianship has changed a lot and improved recently with multi-signature features, this is another thing that can even make things better. And this is also good for the insurance industry. And now, insurance firms are now offering specific packages that are targeting the crypto niche.

Bringing Peace of Mind

Peace of mind on the part of investors is when it comes to the crypto market can be tricky. You have hacking incidents that happened to exchanges in the past that affected investors. With what the Winklevoss twins are offering, it seems that they can ease the fears of potential institutional investors. Gemini in their update mentioned that “We were able to successfully demonstrate to insurers that Gemini, a New York trust company, is indeed a safe and secure exchange and custodian where customers can buy, sell, and store digital assets in a regulated, secure, and compliant manner”

Now, does it meant that it will become easier for institutional investors to participate? Is Gemini anticipating for the entry of big players at this point?

Lee Jenkins

Lee is our resident cryptocurrency expert who knows the ins and outs of each coin and the blockchain technology behind them. You’ll find that most of our technical guides are written or overseen by Lee and they are all easily digestible by the new and experienced alike, so there is no better place to learn blockchain 101 than here. Occasionally you may see a news article from him if it’s tech related!

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