Popular U.S.-based cryptocurrency Bittrex has secured insurance coverage of up to $300 million for cryptoasset held in its cold wallets.
According to a press release shared with CryptoGlobe, the insurance policy was placed through insurance brokerage giant Marsh and held by Lloyd’s Arch Syndicate 2012, which provides casualty and specialty insurance for corporations.
The insurance was approved after Bittrex successfully demonstrated “exchange’s extensive internal security and compliance protocols.” The document adds underwriters were “further impressed” upon learning other exchanges are built using Bittrex’s technology. Its coverage is for assets held in cold storage – meaning in wallets not connected to the internet – and covers both external theft and internal collusion.
Sarah Downey, co-leader of Marsh’s Digital Asset Risk Transfer (DART) team, was quoted as saying:
We worked closely with Bittrex to create a tailored insurance solution to fit their specific cryptocurrency needs.
Bill Shihara, Bittrex’s CEO, noted that the insurance coverage provides “another layer of peace of mind” when it comes to its security, and that the firm is “committed to prioritizing security throughout all of our decisions and forward looking blockchain technologies.”
Cryptocurrency exchanges have been adding insurance to their assets over the past few months. Coinbase has a $255 million insurance for assets held in its hot – online – wallets, while the Winklevoss’ Gemini exchanged has created its own insurance company with $200 million for its cold wallets.
Featured image via Pixabay.