Winklevoss twins set up cryptocurrency captive

Gemini Trust Co. LLC, a cryptocurrency exchange founded by former Olympic rowing brothers Cameron and Tyler Winklevoss, has set up a captive insurance company providing up to $200 million in coverage for its custody business.

In a statement released Thursday Gemini said that it worked with brokerages Aon PLC and Marsh LLC to set up captive insurer Nakamoto Ltd. in Bermuda where it is licensed and incorporated.

Aon is Nakamoto’s captive manager, while Marsh’s digital asset risk transfer team brokered excess coverage from the commercial insurance markets for the custody business, Gemini 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,” Cameron Winklevoss, president of Gemini, said in the statement.

In addition to the coverage provided by the captive, Gemini customers can buy insurance for their segregated crypto assets, Gemini said.

Gemini’s custody business is regulated by the New York state department of financial services and provides storage and security services for cryptocurrencies.