BitGo Expands Insurance Program For Digital Assets To Over $700 Mln
U.S.-based digital asset services firm BitGo has significantly expanded its insurance program capacity with British insurer Llyod’s of London that provides comprehensive insurance protection for cryptocurrencies and digital assets such as Bitcoin held in the Business Wallet and Custody offerings by either BitGo, Inc., or BitGo Trust Co.
In February 2019, BitGo became the first to begin offering a comprehensive and transparent insurance protection for up to $100 million at no additional cost to all BitGo Custody clients.
In March 2020, BitGo also became the first digital asset custodian to offer clients the ability to purchase their own dedicated excess limits above the already available $100 million “all customer” Crime/Specie at pre-agreed rates.
BitGo has now expanded the program by over $600 million and is now able to offer a lower cost Dedicated Customer insurance protection capacity of over $700 million, due to its technology and scale.
BitGo has teamed up with specialty commercial insurance broker Woodruff-Sawyer & Co., who has partnered with Paragon International Insurance Brokers of London, to enable the expansion of insurance protection.
With the over $700 million cold storage insurance capacity or Dedicated Customer Crime/Excess Specie insurance capacity, BitGo is said to have the largest in-force cold storage Specie program to date.
The expansion was necessitated due to strong demand from institutional custody customers. BitGo provides institutional investors with liquidity, custody, and security solutions. It processes over 20 percent of all global Bitcoin transactions.
The key features of the Expanded Specie Insurance are highly-competitive premiums due to BiGo’s under lying $100 million program, adjustable limits and pro-rated premium so clients only pay for the relevant period of protection.
BitGo introduced the first regulated custodian purpose-built for digital assets in 2018 when it launched BitGo Trust Co. in the U.S. and has seen strong adoption. It was granted a DFS Trust Charter license under New York Banking Law by the New York State Department of Financial Services in March this year.
BitGo, backed by Michael Novogratz’s Galaxy Digital Ventures and Goldman Sachs, is a provider of institutional cryptocurrency financial services, providing clients with security, compliance, and custodial solutions. It also processes on-chain Bitcoin transactions, supporting over 400 coins and tokens.
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