Marsh has introduced a groundbreaking insurance solution tailored for custodians responsible for safeguarding digital assets, including financial institutions. This innovative offering extends insurance coverage of up to $825 million to Marsh’s global clientele and is meticulously designed to cater to organizations employing various methods of asset protection.
The insurance facility addresses the needs of organizations employing cold storage methods, where assets are stored offline, as well as those utilizing advanced technologies such as Multi-Party Computation (MPC) for asset safeguarding. Backed by Lloyd’s syndicates and esteemed London-based international insurers, this facility aims to shield digital assets from an array of risks, including natural disasters, external physical theft, and insider threats arising from employee collusion.
This launch comes amidst a burgeoning interest across various sectors in establishing a foothold in digital asset custody, spurred by a decade of growth and maturation in the digital asset market. Marsh’s 2023 global technology industry risk study underscores this trend, revealing that half of the technology industry’s global respondents are actively involved in or exploring digital asset opportunities. Moreover, a notable 136 banks insured by the Federal Deposit Insurance Corporation in the United States are either embarking on or already engaged in digital currency-related projects.
The inception of this new insurance facility is credited to Marsh Specialty’s Digital Asset team, operating from New York and London. Specializing in providing risk transfer solutions for businesses operating in blockchain, cryptocurrency, and other digital asset domains, this team aims to empower custodians with crucial protection against operational risks inherent in digital asset management.
Commenting on the launch, a spokesperson for Marsh stated, “Our new facility equips custodians with critical protection against the foremost operational risks encountered in digital asset management. We are eager to assist our clients worldwide in aligning their risk financing with their commercial strategies, enhancing operational resilience, and solidifying their market position in this burgeoning sector.”
