Bitcoin exchange Gemini secures insurance for client “hot” assets

Bitcoin and digital asset exchange Gemini today announced that the company has secured insurance coverage for the digital assets that it holds on behalf of clients that are stored in hot wallets (i.e. online). The insurance is being provided through a global consortium of leading insurers and arranged by Aon, a global professional services firm providing a broad range of risk, retirement and health solutions.

The coverage complements existing FDIC “pass-through” deposit insurance for which fiat funds (U.S. dollars) of Gemini customers are eligible for. The enhanced insurance is a milestone for Gemini, as the New York trust company has become an even safer and more stable place to buy, sell, and store bitcoin.

Yusuf Husain, Head of Risk at Gemini stated that insurers have been reluctant to safeguard the cryptocurrency industry due to a large number of high-profile hacks that have resulted in devastating losses over the years, not to mention poor security standards, internal controls, policies and procedures that have characterized much of the earlier days in the space. As a result, many crypto exchanges and custodians have either been unable to obtain insurance or dismiss it due to the high cost of premiums required by the few insurers willing to provide coverage.

“We were able to successfully demonstrate to insurers that Gemini is indeed a safe and secure exchange and custodian and further bolsters Gemini as a safe place for customers to buy, sell, and store digital assets in a regulated, secure, and compliant manner. Not only is this a tremendous win for Gemini customers but this is also a win for the broader crypto industry in furthering consumer protection.”

Gemini Head of Risk, Yusuf Husain

Below you can find more information on Gemini’s security methods:

For the majority of Gemini customers, crypto assets are held in offline vaulted storage systems. Only a small portion of digital assets are held in online “hot” wallets.

Hot Wallet

Cold Storage

Gemini’s Cold Storage system provides two tiers of offline storage termed “cold” and “cryo” (short for “cryogenic”) for improved security and redundancy.

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