The digital asset custodian BitGo has recently revealed its total coverage of over $600 million in crypto insurance coverage for large amounts of digital assets. The California-based custodian, the Palo Alto, has $100 million in coverage for all the customers that are using its platform and is in acquisition talks with Galaxy Digital.
Bitgo Adds $600M Crypto Insurance Cover
In addition to the latest addition of $600 million crypto-insurance cover, the platform also offers its customers the ability to kind of recharge their insurance by buying their own devoted limits.
As revealed by the firm on Wednesday, the insurance program of the custodian has stretched by a further $600 million in this capacity.
Peter Najarian, the Chief Revenue Officer of BitGo released a statement that read:
“We’ve been able to offer to our clients the ability to purchase bespoke insurance directly from a group of insurers that sit on top of our insurance at very favorable rates.”
He added to his statement his vision related to the coverage and said:
“I would imagine our in-force coverage of over $600 million is certainly the largest in the marketplace today.”
The crypto-insurance of the digital asset custodian BitGo is procured for the Lloyd’s of London market.
Talking about other custodians in comparison to BitGo, Crypto.com was holding around $360 million and in accordance with the data revealed through public documents, Coinbase has over $320 million in cover.
However, it should also be noted that it is not really easy to acquire insurance cover for crypto assets. Moreover, in addition to this, to achieve capacity in the hundreds of millions of dollars generally needs the crypto assets to be held in cold storage at a unique removal from the internet.
The Custodian Partners With Woodruff-Sawyer & Co.
The digital asset custodian BitGo refused to share the data about the number of customers who have enjoyed the benefits of the top-up cover, or the average amount bought.
In addition to this, the custodian has shaken hands with Woodruff-Sawyer & Co. and Paragon International Insurance Brokers of London.
A Vice President at Woodruff-Sawyer, Jacob Decker said:
“Cold storage means digital assets are not online or in a networked environment.”
Decker added to his statement and said:
“Specie covers fraudulent activity involving insiders such as employees and possible collusion with external bad actors, as well as the physical destruction of key material due to fire, flood or earthquake.”