Digital currency exchange Crypto.com’s insurance policy has been upgraded to cover up to $750 million in digital assets, this is to provide security for users of the platform.
Arch Underwriting, a division of Lloyd’s Syndicate 12, is backing the new policy, which has been in force since September 6.
The insurance covers Crypto.com’s cold storage assets kept on Ledger Vault and includes both direct and indirect custodian coverage.
The policy is one of the largest in the cryptocurrency business, surpassing the $700 million in coverage obtained earlier this year by digital custodian BitGo.
Insurance coverage for digital assets is being expanded to protect against physical damage and, perhaps more importantly, third-party theft.
As mainstream investors and institutional funds increasingly turn to cryptocurrencies, consumer protection standards are becoming increasingly vital.
The overall cryptocurrency market is now worth more than $2.2 trillion, after reaching a high of more than $2.5 trillion earlier this year. The overall value of crypto assets was around $350 billion a year ago.
Hedge funds, asset managers, and companies have all become important actors in the market’s growth. Now that crypto investing has been sufficiently de-risked in terms of professional reputation, financial advisers are also trying to get in on the fun.
Retail investors are quite engaged in the industry, as evidenced by the popularity of mobile investing apps like Crypto.com.
Despite the presence of major, institutional participants, crypto infrastructure remains vulnerable to concerted attacks, particularly within DeFi, as the $600 million Poly Network vulnerability in August demonstrated.
As more service providers emphasize security and data privacy regulations, insurance policies that provide monetary protection against theft are going to become increasingly important.
