Crypto wallet platform Curv has joined hands with Munich Re to get an insurance benefit of up to $50 million for the digital assets stored in its wallets.
The insurance will cover any attack on the platform leading to a loss of its clients’ assets. Describing the scenarios, the wallet provider noted that the plan would protect the assets “in the case of an external cyber breach or malicious behavior by Curv or one of its employees.”
A unique approach to store digital currencies
Founded in 2018, Curv offers wallet services to institutional clients. It has developed a cryptographic mechanism that eliminates the private key altogether. In addition, the wallet’s multiparty computation (MPC) protocol does not depend on a single combination of username and password for the access of assets.
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The New York-headquartered company explained that for a successful attack on its platform, hackers need to obtain both Curv’s and its customers’ shares at the same moment in time, which is “extremely unlikely” due to the platform’s continuous and automated rotation of shares.
“Even in an extreme scenario where both networks’ shares were somehow simultaneously compromised and a transaction were initiated outside of the corporate policy, Curv’s insurance would kick in to cover the loss,” the company detailed.
Curv’s announcement came days after the attack on the Binance’s hot wallet which resulted in the theft of more than $40 billion worth Bitcoins. The exchange, however, assured that it would fully compensate all the victims from its Secure Asset Fund for Users (SAFU). Meanwhile, earlier today, Finance Magnates reported that the cryptocurrency exchange would resume its deposit and withdrawal services from Tuesday.
To increase customers’ trust amid numerous attacks on crypto-based platforms, many digital asset services providers are focusing on insuring their funds. Coinbase earlier revealed that it has bought a $255 million insurance plan from Lloyd’s of London-registered broker Aon to cover its hot wallets.