Captive can bolster Gemini as the leading digital currency exchange: Clifford Chance
Nakamoto, the captive established by virtual currency exchange Gemini, will “bolster its position as one of the leading digital currency exchanges worldwide,” according to Nick Williams, partner at international law firm Clifford Chance.
Clifford Chance advised venture capitalists Cameron and Tyler Winklevoss on the establishment of Nakamoto, the Bermuda-based captive, which insures Gemini Custody.
In 2015, Gemini received one of the first licenses issued from the New York Department of Financial Services to operate a virtual currency exchange, through which customers may trade virtual currency with US dollars.
Nakamato, which was named after the presumed pseudonymous creator of Bitcoin, assists Gemini in expanding its insurance capacity. It provides Gemini with $200 million insurance coverage, and allows its customers to secure additional insurance for their cryptocurrency.
Clifford Chance associates Benjamin Lee and Stephan Yang assisted Williams in establishing the captive, with partner Michael Seaton and associate Jason Sacks advising on tax matters.