Sebastian Sinclair

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 <li>The insurance policy was taken up with a syndicate from the world’s oldest underwriter, Lloyd’s of London</li>
 <li>Matrixport hopes it will bolster its suite of custody offerings throughout frosty market conditions</li>
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Financial services firm Matrixport has secured critical insurance coverage as the crypto industry continues navigating liquidity crises that brought down some major players.



Matrixport said Sunday it locked in $50 million from <a href="https://www.lloyds.com/en-cn/lloyds-around-the-world/underwriting-divisions/canopius" target="_blank" rel="noreferrer noopener">Canopius</a>, one of the largest syndicates operating under insurance giant Lloyd’s, with more than $2.2 billion in premiums.



Lloyd’s is the world’s oldest insurance underwriter with roots stemming as far back as 1688. The group has been involved in crypto insurance since at least 2020.&nbsp;



The corporate body has launched multiple <a href="https://www.lloyds.com/about-lloyds/media-centre/press-releases/lloyds-launches-new-cryptocurrency-wallet-insurance-solution-for-coincover" target="_blank" rel="noreferrer noopener">insurance policies</a> directed at the digital asset industry covering both online and offline storage solutions.



Matrixport is led by crypto billionaire Jihan Wu, co-founder of Bitmain Technologies, the largest manufacturer of bitcoin mining rigs. Wu left the firm last year to run spinoff Bitdeer and Matrixport after a lengthy leadership <a href="https://www.coindesk.com/business/2021/01/26/bitmain-co-founder-exits-resolving-years-long-power-struggle-as-mining-firm-preps-ipo/" target="_blank" rel="noreferrer noopener">dispute</a>.



Several assets held in cold storage by Matrixport’s institutional custodian, Cactus Custody, will be protected including bitcoin, bitcoin cash, ecash, litecoin and ether, according to a statement.



Attempting to widen its revenue streams outside retail investment, Cactus Custody integrated with MetaMask Institutional at the beginning of the year via a new feature that supports <a href="https://cms.blockworks.co/custodial-solution-for-metamask-institutions/" target="_blank" rel="noreferrer noopener">multichain compatibility</a>.



Matrixport’s fresh insurance coverage serves as a bid to attract future growth, despite a slump in both retail and institutional interest.



“The insurance coverage enhances our custody offerings and empowers clients to leverage our ecosystem in a meaningful way, especially for institutional clients where insurance coverage is a&nbsp; compulsory requirement,” Matrixport’s COO Cynthia Wu said in the statement.



Matrixport has kept a keen focus on its operations despite frosty market conditions and a liquidity crunch that crippled numerous crypto firms earlier this year, including <a href="https://cms.blockworks.co/celsius-founder-withdrew-10m-before-freeze-to-pay-taxes-report/" target="_blank" rel="noreferrer noopener">Celsius</a> and <a href="https://cms.blockworks.co/voyager-to-liquidate-assets-at-auction/" target="_blank" rel="noreferrer noopener">Voyager</a>.



The firm snapped up <a href="https://cms.blockworks.co/crypto-platform-matrixport-hires-big-name-coinbase-exec-to-build-us-business/" target="_blank" rel="noreferrer noopener">Anthony DeMartino</a>, head of risk strategies, institutional decentralized finance and derivatives trading at Coinbase in June where his prized Wall Street contacts formed part of Matrixport’s hiring decision.



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