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Crypto.com, a renowned crypto exchange, has increased its insurance program to cover up to $750 million worth of digital assets. The exchange unveiled this news through a blog post earlier today, noting the new policy is lead by Arch Underwriting, a division with Lloyd’s Syndicate 2012. Reportedly, this expansion has made Crypto.com’s insurance program one of the largest in the crypto industry.
According to the blog post, this is the largest insurance coverage that the exchange has ever secured for its cold storage assets on Ledger Vault since its launch. The policy included both direct and indirect custodian coverage. Per Crypto.com, its 10 million users can invest in various cryptocurrencies, knowing their assets are protected. Purportedly, the insurance policy covers threats, such as physical damage or destruction as well as third-party theft.
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Commenting on this development, Kris Marszalek, the co-founder, and CEO of Crypto.com, said,
We believe that security and data privacy are the foundations of achieving mainstream cryptocurrency adoption. The renewed policy from Lloyd’s will significantly expand security protection for our growing user base, together with our previous large policy and ongoing proactive ‘Defense in Depth’ approach.
The result of strategic partnerships
Per James Croome, the Head of Fine Art & Specie for Arch Underwriting at Lloyd’s Syndicate 2012, understanding the custodial process is one of the most vital and time-consuming stages, regarding underwriting any digital asset. However, joining hands with Ledger Vault enabled Crypto.com to offer underwriters confidence in their custodial security. On top of this, Crypto.com obtained an insurance policy in a shorter time.
This news comes as digital asset companies continue expanding their insurance coverages to protect user funds. This, perhaps, explains why institutional investors have been increasingly dabbling in the nascent asset class. Before Crypto.com, BitGo increased its cold storage insurance program to cover digital assets worth over $700 million. Prior to this expansion, the company’s insurance cover was worth $100 million.
This news comes after Poly Network suffered a $612 million attack in August. This high-profile hack shows the importance of crypto firms getting insurance policies that offer protection against theft, seeing as crypto infrastructure is susceptible to coordinated attacks.