Cameron and Tyler Winklevoss have created a Gemini insurance company to protect clients against the potential loss of coins from its offline vaults.
It's rumored that they will possibly have a whopping $200 million coverage limit.
According to CoinDesk, insurer will provide coverage for customers of Gemini Custody, the crypto cold storage service of Gemini Trust Company. Typically, cold storage policies cover losses due to insider thefts and collusion, as well as the destruction of private keys by natural disasters like floods, earthquakes and so on.
Cold storage refers to the practice of keeping the cryptographic keys controlling a crypto wallet offline, on a hardware device disconnected from the internet or a slip of paper locked in a safe.
CoinDesk reports that Gemini’s new policy, which supplements its captive with coverage from outside insurers, has “the largest limit of insurance coverage currently available by any crypto custodian in the world,” said Yusuf Hussain, the company’s head of risk.
Gemini’s captive insurance company is dubbed “Nakamoto” after bitcoin’s mysterious creator, and licensed by the Bermuda Monetary Authority (BMA). 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.
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