Gemini launches captive to insure crypto custody 16 January 2020New York Reporter: Maria Ward-Brennan
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Cryptocurrency exchange and custodian Gemini Trust Company (Gemini) has launched Nakamoto, a captive insurance company licensed by the Bermuda Monetary Authority (BMA).
Nakamoto, which is believed to be the first captive to insure crypto custody, will allow Gemini Custody to increase its insurance capacity beyond the coverage currently available in the commercial insurance market.
The captive will allow the firm to have $200 million in insurance coverage, which according to Gemini, is the largest limit of insurance coverage purchased by any crypto custodian in the world.
Gemini Custody is regulated by the New York State Department of Financial Services (NYDFS) and is SOC 2 type one compliant.
Aon has been appointed as the captive manager for Nakamoto while Marsh's digital asset risk transfer (DART) team brokered excess insurance from the commercial insurance markets to provide a robust custody insurance solution.
Cameron Winklevoss, president of Gemini, said: "Gemini has created a captive insurance company to address this. Obtaining meaningful insurance in the crypto industry remains a challenge, and our captive will help to increase our insurance capacity and move the industry forward."
Yusuf Hussain, head of risk of Gemini, added: "Gemini recognised this gap and collaborated with two of the world's largest insurance brokers, Aon and Marsh, to solve this."
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