Gemini’s $200M Crypto Insurance Indicates Rapidly Rising Instiutional Demand
The Gemini crypto asset exchange has just announced an increase to its custody platform’s insurance coverage. At $200 million, the Winklevoss-led trading venue now boasts the largest cold storage insurance limit of any crypto custodian on the planet.
The decision to increase its coverage shows Gemini Custody is clearly expecting demand for its services to also increase. Judging by the size of the new coverage and the platform’s reservation for accredited investors, the company anticipates serving some large holders in future.
Gemini Positioning Itself to Serve a Richer Class of Potential Crypto Investor
Crypto exchange and custody provider Gemini has just announced big changes to its insurance coverage. The company has launched its own captive insurance provider. Named Nakamoto, after the anonymous creator of Bitcoin, the new firm is licensed by the Bermuda Monetary Authority.
According to a statement by the exchange, Nakamoto will allow accredited investors using Gemini Custody up to $200 million worth of coverage. This makes it the world’s most insured crypto asset cold storage solution.
As well as the cold storage insurance, the exchange will also benefit from additional cover. Both segregated crypto assets and hot wallet insurance is available.
Nakamoto is a joint effort with insurance brokers Marsh and Aon. Helped by experienced partners, Gemini claims the firm will “be able to tap into broader insurance markets” and provide a high level of coverage “at optimum costs”.
In today’s post Yusuf Hussain, Gemini’s Head of Risk, writes:
“Insurance is essential to the health and growth of modern financial markets and we’re proud to bring insurance to the crypto markets.”
This Top Crypto is Poised for Massive Gains as Market Remains Flat
Saturday February 22, 2020
EOS – like all major cryptocurrencies – has been seeing some turbulent price action over the past several days, with Bitcoin’s sharp drop incurred this past Wednesday sending shockwaves throughout the aggregated market. These...
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1/2 We are excited to announce that Gemini Custody now has $200M in insurance, the largest limit of insurance coverage purchased by any #crypto custodian in the #world! pic.twitter.com/0uFS5SvNJS
— Gemini (@Gemini) January 16, 2020
Fresh 2020 Highs Inbound: XRP Paints Highly Bullish Technical Pattern
Wednesday February 19, 2020
This past week XRP saw an incredibly bearish retrace after struggling to maintain its position within the lower-$0.30 region, with its drop from its 2020 highs of $0.34 leading the crypto to plummet all...
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Reducing Risks Might Make Cryptocurrency More Appealing
For a long time now, those observing the crypto asset markets have waited eagerly on the arrival of institutional investors. Plenty of evidence, previously reported by NewsBTC, supporting the argument that institutional money is coming to crypto. However, given that the largest money managers of the world spend more time trying to protect clients’ money and less studying blockchain technology, the market likely remains intimidating.
Efforts, like Gemini’s, bring the kind of risk protection institutional investors are familiar with to crypto markets. They will likely assuage some of the reservations money managers have about cryptocurrency. Exchange hacks are common and institutional grade crypto custody would serve as an excellent honeypot for cyber criminals. For this wealthier class of investor, the risks crypto presents are already enough. Also worrying about investments suddenly disappearing to hackers is far too much risk for some.
Related Reading: Sorry Bulls, Bitcoin Isn’t Going Parabolic Just Yet: Here’s Why
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Bitcoin Plunges Below $10,000 After Harsh Rejection: Is this It for Bulls?
Wednesday February 19, 2020
Over the past few minutes, Bitcoin has plunged lower, just now losing the key $10,000 price level, falling through it as if was not much more than a piece of soggy letter paper. At...
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