Cryptocurrency custody services firm Anchorage has announced that it is ready to offer full insurance coverage for storing digital assets.
The official blog post states that Anchorage will provide from now on insurance coverage for investors as well as institutions that covers digital assets under custody. Prior to this, the custody services company raised $17 million in a Series A round led by Andreessen Horowitz.
“Here’s the problem with crypto custody insurance: not all coverage is equal. Most custodians’ architecture uses a combination of hot wallets and cold storage, and policies may vary from one part of the architecture to another. This approach can result in coverage gaps.”
This development follows the partnership with major insurance broker Aon, which previously had stated that the company was seeing more crypto specific protections catering to the new industry.
The blog post further outlines not all coverage of cryptocurrency custody insurance is equal as most custodians use a combination of hot and cold storage, on which policies may differ. The custody firm stated that it has acquired a crime insurance policy, which apparently covers both types of digital asset storage under one policy.
The company further mentioned that “with Anchorage, investors don’t face such a trade-off. Our solution is built on new technology that advances beyond cold storage to enable online participation with offline assets. As a result, we were able to work with insurers to develop an insurance policy that breaks new ground for our industry, covering digital assets under custody end-to-end throughout their entire life cycle.”
Anchorage was launched back in January and at that time it claimed to be based on the principles of easy access to assets, voting, auditing proof of existence as well as quick transactions. In addition to that, the company stated that large scale investments in digital assets, for instance such as those from institutional players, will bring new growth to the blockchain community.
Meanwhile, insurance giant AXA XL and insurance technology startup Assurely have jointly launched a new insurance product dubbed CrowdProtector that covers equity crowdfunding and security token offerings. ICE’s Bakkt has also acquired the Digital Asset Custody Company aiming to provide a purpose-built custodian that protects cryptocurrencies in order to provide better security to its customers.
On the other side, some people within the crypto community still consider the custody industry as slightly shaky, with the risk of losing funds being a factor to be wary of.