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Anchorage, a custody services firm backed by Andreessen Horowitz and others, is giving its customers something many cryptocurrency holders and traders repeatedly request. It has announced via a blog post that it has added insurance coverage for institutional digital assets held under custody. The coverage was made possible through a partnership with insurance broker Aon, the same company that secures Coinbase’s assets.

Anchorage co-founder and CEO Nathan McCauley says in his blog post that the insurance will help protect users from activity such as hacks and fraud that have plagued other platforms. He adds, “Because digital assets are relatively new, and digital asset custodians are even newer, custodians must seek out bespoke insurance policies. Custodians work with insurance brokers who evaluate their risk profile, craft the insurance policy, and find underwriters who will pay out in the event of a claim.”

The new policy reportedly covers both hot and cold storage and specifically includes language targeting potential losses from theft. Anchorage gives the impression that this coverage is sometimes difficult to receive, as policies covering both storage types are sometimes difficult to receive.

McCauley further explains, “With Anchorage, investors don’t face such a trade-off. Our solution is built on new technology that advances beyond cold storage to enable online participation with offline assets. As a result, we were able to work with insurers to develop an insurance policy that breaks new ground for our industry, covering digital assets under custody end-to-end throughout their entire life cycle.”

Aon’s Managing Director of Financial Institute Practice, Jackie Quintal, adds in a statement, “We are excited to partner with Anchorage, and leverage our team’s deep understanding of their custodial approach to tailor appropriately broad insurance. When a solution can be insured end-to-end, clients are ultimately less exposed.”

Insurance coverage for crypto assets is not a new concept, but it has had a certain degree of difficulty finding a strong footing. This has been due to several factors, including regulatory restrictions, the nascent status of the industry and the extreme volatility of values. However, as the industry matures, more coverage will be introduced and, perhaps, mainstream crypto users will eventually see protection similar to that offered by the “Federal Deposit Insurance Corporation” in the United States.

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