United States-based cryptocurrency exchange firm, Bittrex has secured insurance cover of up to $300 million for its cold storage system. The firm announced on 30th January that the coverage will help safeguard the digital assets held in its cold storage system.
Moreover, the announcement claims that the insurance policy was brokered through insurance brokerage giants Marsh. In addition, it was led by Lloyd's Arch Syndicate 2012. The announcement adds that the firm was approved due to its extensive security and compliance protocols.
Arch Syndicate offers speciality insurance and casualty covers to corporations. Bittrex will be subjected to the full terms and conditions. As per Bill Shihara, the CEO Bittrex:
“Bittrex focuses on doing the right thing by our customers with security at the top of our mind. This insurance coverage provides another layer of peace of mind. From our institutional customers to hobbyists, we are committed to prioritizing security throughout all of our decisions and forward-looking blockchain technologies.”
Additionally, Bill notes that Bittrex will provide the topmost security to everyone; whether hobbyists or institutional clients. Having insurance plays a huge part in the growth and success of any business. This is also true for businesses within the cryptocurrency industry. Marsh’s Digital Asset Risk Transfer (DART) team leader, Sarah Downey said:
“We worked closely with Bittrex to create a tailored insurance solution to fit their specific cryptocurrency needs.”
Furthermore, it seems Bittrex's insurance policy is a record-breaking coverage in the industry. Early into the year, the Winklevoss twins’ founded Gemini launched its own insurance firm. The firm covers up to $200 million for Gemini’s cold storage. On the other hand, Coinbase has coverage of up to $225 million for crypto-assets in both its cold and hot wallets.