Crypto exchange Bittrex has successfully obtained a $300 million digital asset insurance for the cryptocurrency in its cold storage, the company announced in a press release on 29 January.
According to the announcement, the exchange worked closely with insurance broker and risk adviser Marsh in obtaining its specialty insurance for corporations, underwritten by Arch Syndicate 2012. The insurance was also supported by various syndicates at Lloyd’s of London, one of the largest insurance markets around the globe.
Sarah Downey, co-leader of Marsh’s Digital Asset Risk Transfer team, said in a statement:
“Insurance plays a critical role in the growth and development of any business, including those that work with blockchain technology and digital assets. We worked closely with Bittrex to create a tailored insurance solution to fit their specific cryptocurrency needs.”
In order for the exchange to obtain the insurance, it had to demonstrate its internal security and compliance protocols. Bill Shihara, CEO of Bittrex, explained that the $300 million insurance is just another layer on top of the exchange’s actual security, and will not only provide clients with “peace of mind”, but also show that the company is “committed to prioritizing security throughout all of our decisions and forward-looking blockchain technologies”.
This is not the first time that Lloyd’s has struck a deal with a crypto firm. Back in August 2018, it began insuring assets held by cryptocurrency custodian Kingdom Trust. Later, in April 2019, it also started insuring the hot wallets of cryptocurrency exchange Coinbase, reportedly covering a $255 million limit.
The Winklevoss’ Gemini Exchange, on the other hand, took things in its own hands two weeks ago, when it launched its own insurance company to cover up to $200 million for Gemini Custody. Called Nakamoto, Ltd., the firm is a captive insurance company licensed by the Bermuda Monetary Authority.