Winklevoss Twins Launched a New Company — Nakamoto

Gemini cryptocurrency exchange this Thursday announced the launch of its own insurance company, Nakamoto.

Nakamoto will work on the model of a “captive” insurance company — such a company belongs to the parent structure and serves only its risks. The amount of insurance coverage of customer assets in the cold wallets of the Gemini Custody service will be $200 million. According to the exchange, this is the largest collateral available to date in the cryptocurrency industry for custody service. Coinbase has $255 million in insurance, but in its case, it covers hot wallets.

Nakamoto was launched in collaboration with leading insurance brokers Aon and Marsh. Aon acts as a captive manager and helped Gemini obtain a license for its new business in Bermuda. This jurisdiction traditionally attracts insurance companies using a similar model due to its favorable regulation.

Gemini President Cameron Winklevoss said insurance is one of the main barriers to the massive spread of cryptocurrencies.

“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,” he added.

The launch of the custodial service for institutional investors Gemini Custody took place in September.

Author: Marko Vidrih

Featured image credit: The Verge