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BitGo Announces $100M Insurance for Its Customers’ Crypto Assets Through Lloyd’s of London

Originally published on: CoinSpeaker
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February 20, 2019

Photo: BitGo / Medium

Photo: BitGo / Medium

Security of digital assets remains one of the main issues for cryptocurrency holders. This type of assets is still rather new for a wide audience which causes a number of worries and concerns.

A new wave of fears was caused by the situation with the major Canadian crypto exchange. This month, the community has been actively discussing the case with QuadrigaCX as its cold storage with customers’ funds became inaccessible after the death of its CEO.

As it has become known, crypto security company BitGo has decided to provide its customers with a new solution that will make them feel more confident about their holdings. Or it will be better to put it another way: customers will be less afraid of losing them.

Insurance for Digital Assets

BitGo, a crypto custodian backed by Goldman Sachs, is planning to facilitate insurance for digital assets and to offer $100 million of cover against theft or loss of cryptographic keys. The insurance will be provided via the Lloyd’s of London insurance market.

Good news for BitGo clients: there are no additional costs for them.

Thanks to this new initiative, custodial assets held by BitGo will be protected against hacks of third parties, insider theft of clients private keys by employees, damage or loss of private keys.

The CEO of BitGo, Mike Belshe, commented their new service the following way:

“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.”

How to Get Insurance

Users of BitGo Business Wallet will have a possibility to buy purchase theft insurance and key recovery service that is called Lost Key Cover via Digital Asset Services, an insurance provider that operates under the control of the UK’s Financial Conduct Authority (FCA).

It will be possible to purchase the Lost Key Cover service on an annual subscription basis or when it is needed.

According to David Janczewski, who is the CEO of Digital Asset Services, their “goal is to make digital currency safe and accessible to all by providing total peace of mind for anyone who is currently holding cryptocurrency, or anyone who might be on the outside looking in and just needs that extra bit of reassurance before investing.”

Let us also remind that among the recent BitGo’s initiatives there is a partnership with over-the-counter exchange Genesis. Thanks to this collaboration clients have an opportunity to trade crypto directly from BitGo custody without a necessity to transfer digital assets from a cold wallet to the exchange.

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