Cryptocurrency custodian BitGo is now offering excess insurance coverage to its clients, on top of its existing $100 million policy.
The “Excess Specie Insurance” is being offered via the syndicates of Lloyds of London, Rodrigo Vicuna, CFO of BitGo, told The Block. BitGo’s existing policy is also provided via the same insurance marketplace.
Vicuna said the move had been taken based on clients’ feedback as they wanted to have the ability to purchase their own dedicated excess limits.
Crypto.com is the first firm to sign up for BitGo’s excess insurance policy. Vicuna declined to share how much excess coverage the firm has taken, but said: “A small exchange may only require a $5-10 million policy, while larger investors will need more.”
It is not clear what the minimum and the maximum limits of the excess insurance policy are, BitGo said limits are “adjustable” based on clients’ needs.
“Our clients are fiduciaries of their clients’ assets...This excess policy goes the extra mile to offer our clients additional protection for their digital assets tailored to their specific needs,” said BitGo co-founder and CEO Mike Belshe.
“Cold” storage only
Notably, the excess insurance is only for “cold” storage wallets (i.e., for cryptographic keys kept offline), Vicuna told The Block. BitGo’s $100 million policy is also only for cold wallets, he said.
Vicuna further said that clients who want to purchase insurance for “hot” wallets ((i.e., for cryptographic keys kept online) could do so via BitGo-Coincover. The two firms partnered last November to launch “cryptocurrency wills,” a kit that is available via Amazon.
Users can set up their cryptocurrency wills via Coincover’s website, which includes setting up a BitGo “hot” wallet. The kit contains a stainless steel card, a unique ID and notification cards. Upon a person’s death, the information on cards, combined with a death certificate, can be used to pass on crypto-assets to selected beneficiaries.
Looking ahead, BitGo aims to become “a full-service financial services firm for the institutional market,” Vicuna told The Block, adding that BitGo is building “deep” relationships with its clients “to drive value for them and to create a long term, sustainable business.”
Founded in 2013, BitGo is backed by notable investors, including Goldman Sachs’ Principal Strategic Investments, Galaxy Digital Ventures and Valor Equity Partners, among others. The firm has raised $69.5 million in total funding to date, according to Crunchbase.
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