BitGo Broadens Insurance to Cover Over $100M
Cryptocurrency insurance is notoriously difficult to obtain and policies often require the assets to be held in cold storage, or offline.
Mike Belshe, Co-Founder and CEO, BitGo; Source BitGo
key takeaways
- Digital asset custodian BitGo has secured $700 million in insurance coverage for digital assets custodied in cold storage
- BitGo’s digital asset insurance, which is sourced from Lloyd’s of London market, launched in 2019
Digital asset custodian BitGo has secured $700 million in insurance coverage for digital assets custodied in cold storage, the firm announced Wednesday.
The Silicon Valley-based company expanded its cold storage insurance program by $600 million. BitGo covers all clients up to $100 million in the case that assets are lost or damaged. The firm now allows clients to purchase their own limits for up to $700 million in coverage.
BitGo’s digital asset insurance, which is sourced from Lloyd’s of London market, launched in 2019.
Cryptocurrency insurance is notoriously difficult to obtain and policies often require the assets to be held in cold storage, or offline. While cold storage shifts the risk from digital to physical, critics claim that it is difficult to trade the assets and it can take time to access them.
Also today, Michael Novogratz’s crypto-focused financial services firm Galaxy Digital is reportedly in advanced discussions to purchase BitGo. Last year, online payment service provider PayPal almost purchased BitGo for a reported $750 million in cash before the deal was called off.
BitGo has raised $69.5 million in past funding rounds. Investors include Galaxy Digital and Goldman Sachs. BitGo is also being considered by Goldman Sachs as custodian for a wealth fund that will offer bitcoin exposure to high-net-worth investors.
