In a press release on Tuesday, insurance company Marsh said it has introduced a digital asset custody insurance product that provides capacity of up to $825 million, the largest facility of its kind.
Marsh, which has more than 45,000 employees and is part of professional services giant Marsh McLennan, said the new insurance product will support institutions with digital assets held offline in cold storage, as well as other custody solutions such as multi-party computing (MPC). Marsh said that the encryption keys are divided into parts.
Cryptocurrency insurance has traditionally been thin on the ground, with many exchanges and large trading companies holding enough cryptocurrencies to cover their losses if necessary. Marsh, through his association with insurance market Lloyd's of London, has been a pioneer in the cryptocurrency space, securing hundreds of millions of dollars in cover for the likes of Crypto.com, via Partnership With companies such as Ledger and Lloyd's Underwriters Secure the bow. The new cryptocurrency hedging facility was developed by Marsh Specialty's digital assets team in New York and London.
“The Marsh facility provides custodians with protection from the key operational risks they face in managing digital assets; we look forward to supporting clients globally in aligning risk financing and evolving trading strategies,” Jacqueline Quintal, global digital asset leader at Marsh Specialty, said in a statement. They are focused on building their operational resilience and market presence in this rapidly growing sector.”
