Digital assets financial services firm BitGo has announced a new comprehensive insurance product for cryptocurrency assets, providing safeguards for their custodian and wallet services customers. The launch follows extensive due diligence into BitGo’s software, hardware, policies and procedures, allowing underwriters to guarantee cover for those with digital asset holdings in BitGo accounts, the company said in a statement.
The move will appeal in particular to institutional investors, who require additional safeguards in order to meet their own compliance standards when investing in digital assets like cryptocurrencies.
Custodial assets held by BitGo are covered by the Lloyd’s insurance market up to the value of $100 million, with the firm itself covered by a variety of different policy types to provide extra reassurance to its customers.
The custody insurance will be available to BitGo clients at no extra charge, offer comprehensive cover in the event of hacks, thefts or loss, according to the company. This includes cases of internal theft (by employees), as well as external threats.
BitGo Business Wallet users will have the additional option to purchase insurance, including key recovery for retrieving private keys, as well as standard theft insurance.
BitGo CEO Mike Belshe said the insurance coverage was the most comprehensive product of its kind for digital asset investors, which would help build trust amongst investors.
He noted, “This is the most complete insurance offering in the industry. It is not always easy for some clients to understand under what circumstances their investments are insured and to what extent their loss would be covered. We are changing that by being more transparent than any other company about the terms of our coverage. Transparency and accuracy is essential for building trust in the market.”
Nicholas Edwards of Lloyd’s said the decision to underwrite the policies was taken in light of the sophistication of BitGo’s security and internal procedures. He explained, “We have been working hard to tailor a bespoke insurance product for BitGo, in this new, rapidly developing and complex sector.”
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