Coins are held by Gemini Custody™, a regulated crypto custodian. This means Gemini is regularly audited and subject to the compliance standards of a traditional financial institution. Wealthsimple Digital Assets access to your crypto-assets held at Gemini is permitted only to settle sell transactions initiated by you.
We chose Gemini based because of its regulated status as a trust company, and the security that provides compared to an unregulated trading platform. However, third-part custody comes with some different risks than a private wallet. Gemini also has $200M in cold storage insurance coverage.