Crypto wallet BitGo has come up with a new offering that allows its users to cover up to $100 million worth of their digital assets held in their accounts with the blockchain security firm.
While traditional institutions are shying away from cryptocurrencies and related assets, BitGo obtained its insurance coverage from the prestigious Lloyd’s of London, one of the oldest insurance agencies in the world, with centuries of experience in this industry.
“We have been working hard to tailor a bespoke insurance product for BitGo, in this new, rapidly developing and complex sector. Following a thorough review of BitGo’s security and controls we are delighted to have delivered an innovative solution that enables our client to develop and grow its business with confidence and security,” said Nicholas Edwards from Lloyd’s.
Lloyd’s of London will offer protection for digital currency stored at BitGo’s business wallet and custody offerings against theft and loss due to ‘Lost Key Covers.’
This insurance will be also available through other providers including FCA-regulated Digital Asset Services, D&O, E&O, and Cyber Theft.
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Cryptocurrency wallets are attractive to hackers as they have a centralized single point of failure, making them prone to the same security issues faced by millions of web applications globally.
“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,” notes BitGo CEO Mike Belshe.
Secure Access to Crypto Markets
Founded in 2013, BitGo operated originally as a bitcoin wallet provider but then branched out into other cryptocurrencies and now supports multiple altcoins including Ethereum, Ripple, Litecoin, Bitcoin Cash, Bitcoin Gold, and Royal Mint Gold. In April 2018, BitGo launched support for ERC20 tokens, and in July it added 57 coins and tokens.
BitGo’s patent multi-signature wallet technology has attracted institutional players because it offers an enterprise-grade custody service for their assets as well as application programming interface access to its underlying security platform. BitGo’s multisig e-wallets require a transaction to have two or more signatures before it can be executed, a security layer that reduces the risk of fraud.
For more security, a customer can also set spending limits and corporate treasury policies on the account, which also require multiple approvals from the customer to withdraw above-set limits.
Last year, BitGo raised $15 million in new funding, led by Goldman Sachs and Galaxy Digital Ventures LLC, the venture capital firm founded by the billionaire Mike Novogratz.