Expansion of Cold Storage Insurance
BitGo, a heavyweight in the digital asset custody realm, is adding a hefty $600 million to its cold storage insurance program. This significant bump reflects the booming need for secure asset storage in the crypto world. It’s like when your favorite pizza joint adds more toppings to its menu—more options mean happier customers!
The Genesis of BitGo’s Insurance Program
The initial rollout of BitGo’s crypto insurance initiative dates back to 2019, thanks to a collaboration with the prestigious Lloyd’s of London. Clients were first able to protect their valuable digital assets held on BitGo’s Business Wallet service and custodial offerings, enjoying insurance coverage up to $100 million. It’s a bit like getting the seatbelt option on a roller coaster; you want to feel secure while the ride goes on.
Latest Developments in Insurance Capacity
As announced this Wednesday, BitGo’s “Dedicated Customer Excess Specie” insurance program can now cover assets valued at over $700 million! This leap is driven largely by demand from institutional custody clients, as more businesses see the importance of securing their assets under that virtual safety net.
Who’s Onboard?
Among the first clients to embrace this expanded protection plan was the renowned crypto payment platform, Crypto.com. It’s like getting a VIP ticket to a concert; first in line often means the best experience!
CEO Mike Belshe’s Vision
In his statement, BitGo CEO Mike Belshe emphasized the advantages of their technology and scale, allowing for more affordable insurance options.
“This milestone demonstrates that the offering has been very popular with clients seeking the ultimate secure and insured storage,”
he remarked. It sounds like the perfect maraschino cherry on top of the already sweet security sundae they offer!
Backing and Growth
With backing from banking titans like Goldman Sachs and crypto moguls such as Galaxy Digital’s Mike Novogratz, BitGo is not just any fish in the crypto sea—it is the great white shark! With over $16 billion in digital assets under custody as of late 2020, the company clearly knows how to ride the waves in the growing crypto market.
