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The popular Winklevoss twins have launched a new insurance company, through their Gemini Trust Company, to better handle cryptocurrencies. According to the press release, the company is called Nakamoto Ltd and is licensed by the Bermuda Monetary Authority (BMA).
It is the world’s first captive insurance company for crypto custody and gives better coverage than all other offerings. The announcement also states that through Gemini Custody, the product allows $200 million in insurance coverage, touted as “the largest limit of insurance coverage purchased by any crypto custodian in the world.”
According to Gemini President Cameron Winklevoss, Nakamoto satisfies a big problem with access to insurance in the crypto sector. He 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.”
A captive insurance company, in simple terms, is one that is fully owned and operated by the insureds. This is like a decentralized insurance company.
The company is named after Satoshi Nakamoto, the anonymous moniker of the creator(s) of Bitcoin.
Last year, Canadian investment fund manager 3iQ received full approval from the Ontario Securities Commission (OSC) for a publicly-traded Bitcoin (BTC) fund. Gemini Trust Company LLC was announced as the custodian for the product.
