In a blog post released today, Bittrex announced it secured a record $300 million in insurance for its’ cold storage systems. The insurance was underwritten by Arch syndicate 2020, a specialized insurance provider supported by various syndicates at Lloyd’s of London. Bittrex worked closely with Marsh, the world’s leading insurance broker and risk adviser, in placing the coverage.
Why it matters:
Coinbase previously held the record for the largest insurance coverage in crypto covering up to $255 million for cryptocurrency held in its hot wallets. Notably, Gemini also recently announced it had created its own insurance company that provides them with $200 million of coverage against their cold storage assets.
It’s been notoriously difficult for cryptocurrency custodians to gain insurance given the unique underwriting challenges presented by the industry. Although some custodians have been able to successfully get insurance on customer assets, many have elected to self-insure, simply setting aside their own cryptocurrency holdings to cover against any customer losses