On May 11, Cryptocurrency payments platform Crypto.com has announced that it has reached a deal with Ledger Vault and Lloyd’s of London underwriter Arch Insurance, securing a $100 million direct insurance policy led by the latter. This adds to the total insurance, through both direct and indirect coverage, to $360 million.
Crypto.com notes safe custody as being a barrier to adoption, citing a survey by the Economist Intelligence Unit (EIU), where nearly 50% agreed that security concerns prevented greater adoption. The insurance deal is a significant one, as it can be hard to insure digital assets. This deal protect a potential loss in offline vaults.
Kris Marszalek, Co-founder and CEO of Crypto.com said,
The crypto market is woefully under-insured, which puts both custodial firms and users at risk of theft or loss of their assets and presents a roadblock to mainstream crypto adoption. We have committed deeply to the security of our platform, a top concern shared by early adopters and those new to crypto. This additional insurance policy from Lloyd’s, coupled with our previous large policy and ongoing proactive ‘Defense in Depth’ approach, provides another layer of protection for our users.
Although Marszalek is right about the market being under-insured, many exchanges are working on the matter. Coinbase and Gemini have both announced insurances with a coverage of $200 million.