Goldman Sachs-backed BitGo offers $100 million in cryptocurrency insurance

Blockchain security company BitGo is offering up to $100 million in insurance for cryptocurrencies being held in cold wallets.

BitGo is backed by Goldman Sachs and Mike Novogratz, who have funded the company with a combined $15 million.

The insurance for crypto-assets will be covered by Lloyd’s Insurance, with no additional cost being required from existing clients.

In a press release, BitGo states the key features of the insurance cover are:

• Custodial assets held by BitGo are insured for up to $100 million USD through Lloyd’s, the world’s specialist insurance and reinsurance market.
• Business Wallet clients will be able to purchase theft insurance and Lost Key Cover, a key recovery service, for their assets through Digital Asset Services, an insurance provider overseen by the Financial Conduct Authority, the UK financial services regulator.
• BitGo also carries a comprehensive set of corporate insurance policies including D&O, E&O, and Cyber Theft.

BitGo CEO Mike Belshe added: “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.”

The recent case of the lost QuadrigaCX funds has highlighted an overwhelming need for protection of investors, and while the safest method of storage would be for customers to hold their own private keys, insurance offers a useful alternative.

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