Insurance

Gemini, being the regulated custodian of all crypto assets managed by Sovereign, holds the majority of the clients’ digital assets in a proprietary offline, air-gapped Cold Storage system. Only a small portion is held in Gemini’s online Hot Wallet, which is insured.
Crypto assets held via Gemini are protected by best-in-industry cold storage coverage with leading insurance providers.

Gemini maintains $290 000 000 in digital asset insurance, which is in addition to the capital reserves required of Gemini Trust as a New York trust company and fiduciary under New York Banking Law. The insurance coverage consists of $90 000 000 of commercial crime insurance for digital assets held in Gemini’s online Hot Wallet, and $200 000 000 of offline, cold storage insurance coverage for assets held in Gemini Custody™, all brokered and managed by Marsh LLC.

Our custodian’s strategy guidelines are also in accordance with basic FDIC rules and regulations contained in 12 C.F.R. § 330. Digital assets that are denominated in U.S. dollars and stored in the client’s Fiat Account held in at least one Omnibus Account, in at least one Bank in the U.S. qualified for Federal Deposit Insurance Corporation ("FDIC") insurance protection. These means are subject to the Standard Maximum Deposit Insurance Amount per FDIC guidelines (as of now $250,000 per qualified Gemini Customer) and other appropriate restrictions. Non U.S. dollar accounts held at any Banks or monetary foundations, just as U.S dollar stores held at Banks or monetary organizations situated outside of the United States, may not be qualified for FDIC protection.

Certain conditions also may lead Gemini to move fiat money between Omnibus Accounts or end their relationship with one of the Banks. These changes won't influence the accessibility of the Fiat Account or jeopardize the accessibility of FDIC protection.

More details here.