Bermuda premier David Burt shakes hands with Cameron and Tyler Winkelvoss, the twin brothers who founded cryptocurrency exchange Gemini

Bermuda premier David Burt shakes hands with Cameron and Tyler Winkelvoss, the twin brothers who founded cryptocurrency exchange Gemini

Gemini Trust Company, a cryptocurrency exchange and custodian, has launched a captive insurance company licensed by the Bermuda Monetary Authority [BMA] to insure Gemini Custody.

The Caribbean island is a popular location for insurance carriers, owing to its favorable regulatory environment, particularly when it comes to bespoke products and entities such as captives.

“Nakamoto — the world’s first captive to insure crypto custody — allows Gemini Custody to increase its insurance capacity beyond the coverage currently available in the commercial insurance market. This insurance solution gives Gemini Custody $200 million in insurance coverage — the largest limit of insurance coverage purchased by any crypto custodian in the world,” the announcement said.

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”

Captive insurers provide insurance to their corporate owners and some cover third parties as well.

Cameron Winkelvoss, president of Gemini, who co-founded the exchange with twin brother Tyler in 2014, said: “Insurance is one of the main barriers to crypto mass adoption. 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.”

Bermuda premier David Burtsaid said he was “exceptionally pleased” that Gemini had chosen Bermuda as the home for its new captive.

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“Insurance is one of the key building blocks in the development of digital assets and Gemini is one of the most trusted names in the business,” Burt said.

“Their choice of Bermuda demonstrates our strong positioning to leverage our strength in insurance to lend to the development of the fintech industry. I congratulate them on launching Bermuda’s first crypo-captive and look forward to working with them to further develop and incubate the adoption of digital assets,” he addede.

Gemini has launched Nakamoto in collaboration with leading insurance brokers Aon and Marsh. Aon helped Gemini incorporate the captive insurance company in Bermuda, the world’s largest jurisdiction in terms of the number of licensed captive insurers.

 

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