Goldman Sachs-backed cryptocurrency startup BitGo is now able to provide protection for cold wallets that hold up to $100 mln worth of digital assets. According to the company’s recent press release, the funds will be secured through Lloyds, the London-based insurance marketplace where buyers and sellers come together.
A $120 mln mistake could have been prevented
The new policy covers a wide range of black swan situations, such as hacks, thefts, and even the loss of private keys. U.Today reminds its readers that QuadrigaCX, one of the major cryptocurrency exchanges in Canada, owes its customers around $120 mln after the death of its founder. However, the initial narrative has been called into question by some prominent industry influencers, such as Kraken CEO Jesse Powell and Binance CEO Changpeng Zhao (CZ). Even if it indeed had been an inside job, BitGo’s new insurance would have helped QuadrigaCX customers to retrieve their funds.
Bringing crypto insurance to a new level
BitGo’s Mike Belshe calls the new insurance a huge thing for crypto, adding that this is ‘the most comprehensive’ offering on the market. That could be an inflection point for those who only consider investing in the cryptocurrency industry.
Earlier, Bitcoin bull Mike Novogratz claimed that lack of proper custody solutions is one of the factors that stop institutional investors from jumping on the crypto bandwagon. When it comes to BitGo, Novogratz himself has skin in the game given that his crypto bank Galaxy Digital led the startup’s Series B funding round.