Gemini Partners with Aon for Enhanced Insurance Coverage

In a bold move highlighting the demand for security in the digital finance arena, cryptocurrency exchange and custodian Gemini Trust Company, LLC (Gemini) has announced that it has secured insurance coverage for custodied digital assets. This strategic partnership with lending services firm Aon was disclosed in a press release dated October 3rd.

A Brief Overview of Gemini

Founded in 2014 by the Winklevoss twins in the bustling crypto hub of New York, Gemini has established itself as a major player in the digital currency exchange sector. As of now, it ranks as the 50th largest exchange in terms of 24-hour adjusted trade volume, according to CoinMarketCap data.

The Significance of Digital Insurance

The newly acquired insurance coverage is set to complement Gemini’s existing protections for U.S. dollar deposits, which are insured by the Federal Deposit Insurance Corporation (FDIC). Yusuf Hussain, Gemini’s Head of Risk, expressed the importance of such coverage when he stated:

“Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions.”

Market Insights: Aon and the Insurance Landscape

Aon, which claims to hold 50 percent of the cryptocurrency insurance market, is paving the way for an influx of crypto-specific protections. According to another insurance brokerage titan, Marsh & McLennan, the year 2018 was particularly robust for crypto insurance, leading them to form a dedicated team focusing on policies for blockchain startups.

Key Personnel Changes and New Initiatives

In a display of its commitment to innovation, Gemini welcomed Robert Cornish, the former Chief Information Officer of the New York Stock Exchange, to its ranks. Cornish’s expertise will play a crucial role in the advancement of technology initiatives and the monitoring of Nasdaq’s SMARTS Market Surveillance technology for Gemini, enhancing the control over its order books and auctions.

Future Directions for Gemini

Gemini is not resting on its laurels; in April, it unveiled plans to introduce crypto block trading, allowing investors to buy and sell large quantities of cryptocurrencies outside of their conventional order books. Additionally, their collaboration with the Chicago Board Options Exchange (CBOE) to launch Bitcoin (BTC) futures signifies a crucial step in merging traditional financial instruments with the crypto landscape.