Crypto Custodian Bitgo is offering an insurance cover of $100 million against the loss or theft of cryptographic keys. The Lloyd’s of London insurance market has facilitated the offer at no additional costs for Bitgo users.
Bitgo’s offer against Quadriga Wallet Dilemma
The loss of funds from QuadrigaCX wallet left users devastated, after the sudden demise of CEO Gerald Cotton. Furthermore, he solely possessed the password for the cold storage wallets.
Bitgo therefore, will provide insurance for custodial assets in business wallets or Bitgo Trust Company. As a matter of fact, the insurance will cover third-party hacks, private keys thefts by employees as well as outsiders, and loss or damage of private keys. Also, Digital Asset Services is providing a Lost Key Cover.
Expressing his views on the insurance, CEO of BitGo, Mike Belshe, said, ‘it is the most complete offering in the industry’. He added further,
“It is not always easy for some clients to understand under what circumstances their investments are insured and to what extent their loss would be covered. We are changing that by being more transparent than any other company about the terms of our coverage. Transparency and accuracy is essential for building trust in the market.”
Partnerships and Investments for BitGo
DRW Holdings, Goldman Sachs and Galaxy Digital Ventures are backing San Francisco based BitGo. Reportedly, BitGo received an investment of $15 million from Galaxy Digital and Goldman Sachs. Also, BitGo partnered with Genesis Global Trading, an over-the-counter trading platform in January. Through this partnership, users can directly trade crypto from BitGo custody.
Moreover, BitGo received regulatory approval from the South Dakota Division of Banking in September 2018. Therefore, it is the only regulated custodian that is developed for crypto assets. Similarly, Gemini, Coinbase and Citigroup are the other crypto custodians.