Marsh, a leading insurance broker, has announced the introduction of a groundbreaking digital asset custody insurance product, offering coverage of up to $825 million. This development represents the largest insurance capacity available for the crypto custody sector to date.
Enhancing Security for Digital Assets
The new insurance product aims to bolster the security of organizations that store digital assets offline in cold storage solutions, as well as those utilizing advanced custody technologies like Multi-Party Computation (MPC). MPC is a method where cryptographic keys are divided into multiple parts, enhancing the security of digital assets by preventing a single point of failure.
Addressing the Need for Crypto Insurance
Despite the significant growth of the cryptocurrency industry, insurance coverage has remained scarce, leaving many exchanges and trading entities to self-insure by holding substantial crypto reserves. Marsh’s initiative, backed by its vast network and its association with Lloyd’s of London, positions the company as a pioneer in the crypto insurance space. Previously, Marsh facilitated substantial insurance coverage for prominent crypto platforms such as Crypto.com, in collaboration with industry leaders like Ledger and Lloyd’s underwriter Arch Insurance.
Global Support for Crypto Custodians
Developed by Marsh Specialty’s Digital Asset team in both New York and London, this new crypto insurance facility is designed to mitigate key operational risks faced by custodians of digital assets. Jacqueline Quintal, Global Digital Asset Leader at Marsh Specialty, emphasized the company’s commitment to supporting clients worldwide. This initiative aims to align risk financing strategies with the evolving demands of the digital asset market, promoting operational resilience and enhancing market presence for entities in this rapidly expanding sector.
Marsh’s introduction of this substantial crypto custody insurance product marks a significant step forward in providing the necessary risk management tools for the burgeoning digital asset industry, offering a robust solution to one of the sector’s most pressing challenges.
