BitGo, the digital asset custodian that expanded to other business areas, has bought an insurance cover of more than $700 million to protect its crypto holdings from any kind of external threats.
Announced on Wednesday, the crypto custodian company has added more than $600 million to its already existing $100 cover, which it bought in 2019. It has tapped Lloyd’s of London for its insurance requirements and partnered with insurance broker, Woodruff Sawyer.
Coping Up with Institutional Demand
The upgradation of the insurance cover came as the institutional demand for cryptocurrencies is skyrocketing. From hedge funds to corporates, many major institutional players are now investing in crypto in some form or the other.
BitGo has already allowed its custodian clients to purchase their own dedicated excess limits above the company’s $100 million cover since last year, and the recent addition of the $600 million is an extension to that program.
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