Coinbase is negotiating with insurance broker giant Aon, hoping to establish a regulated insurance company

According to CoinDesk, industry insiders revealed that Coinbase, a cryptocurrency exchange, is negotiating with insurance broker Aon, hoping to establish its own regulated insurance company with its help. The establishment of a “exclusive” insurance subsidiary wholly owned by the insured company is a common way for the company to reduce costs and improve access to the reinsurance market, an insurance form that insurance companies purchase to reduce risk. According to sources, Coinbase and Aon believe that this structure may be part of solving the problem of lack of insurance for cryptocurrency exchanges.