Gemini has secured insurance coverage for the digital assets after which it looks.
According to an announcement made by Gemini’s Head of Risk Yusuf Hussain the exchange, which was founded by the Winklevoss twins, has managed to obtain the insurance coverage needed to safely hold digital assets held on Gemini’s hot wallet.
— Gemini (@GeminiTrust) October 3, 2018
Hussain stated that the company was excited to announce the news, adding that the added security aids in their “mission to build the future of money”. He explained that customers will now be provided with extra security on the platform to trade and store cryptocurrencies. This comes as part of the new coverage which complements Gemini’s current Federal Deposit Insurance Corporation (FDIC) deposit insurance for which the fiat funds are qualified.
It seems as though the announcement has brought a particular air of optimism with it. The news certainly should bring security to the exchange, but it might also lead to more safety in the cryptocurrency industry in general. As Hussain wrote:
“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.”
The news comes after Gemini announced the launch of Gemini-dollar, a new token backed by the exchange. The hope of the company is that the token will be able to include the “creditworthiness and price stability” of the US dollar with the features of digital tender. At the time, Gemini had stated that the new token is all above board and will remain under the oversight of regulatory authorities, especially the New York State Department of Financial Services (NYDFS). The Gemini-dollar is built to operate on Ethereum’s blockchain as an ERC20 token and so is held to the standard that ERC tokens are required to have.