Crypto.com has secured a $100 million direct insurance policy provided by Arch Underwriting at Lloyd’s Syndicate 2012.
According to an announcement on May 11, the new policy brings Crypto.com’s total coverage to $360 million, and the company claims that it now has the largest insurance coverage in the entire cryptology industry.
Crypto.com also reports that its user base has doubled in six months to 2 million. Cointelegraph spoke with the company’s CEO, Kris Marszalek, to learn more about the company’s new coverage and increased user base.
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Crypto.com secures direct coverage of $100 million
Marszalek said the new $100 million policy is the largest direct policy secured by Crypto.com, and noted that other coverage has come „indirectly through its custodial partner Ledger Vault.
„The insurance policy covers losses attributable to various events, such as physical damage or destruction (including natural disasters), theft from third parties and more, against the cold storage assets in the Ledger Vault escrow partner,“ he said, adding that Crypto.com „was able to ensure that the coverage terms were tailored to their specific needs.
When asked if insurers were
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- Crypto Investor
- Bitcoin System
- Bitcoin Era
to work with a crypto company, Marszalek said:
„The insurance industry is still very new to the crypto space, and among the rare players who strive to cover crypto assets, the requirements imposed on insured companies are often higher than those of traditional companies due to limited understanding of the technology and higher risk perception of crypto assets.
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„For Crypto.com, the entire process took more than six months and involved an enhanced due diligence exercise on all company processes, and in particular on the storage and access of our multi-signature hardware devices and physical backup keys.
Peak transaction volume
Crypto.com also announced that it has passed the milestone of 2 million customers, with a doubling of its user base in half a year despite the coronavirus pandemic.
„In the first quarter of 2020 we saw a record quarter with new users and trading volume. From fall 2019 to spring 2020, we doubled our user base from 1 million to 2 million in less than 6 months and saw transaction volumes triple between December and April,“ said Marszalek.
„We definitely saw spikes right after the announcement of stimulus packages by the U.S. government. The growing distrust of monetary policy on quantitative easing turned out to be the perfect buildup to this month’s Bitcoin halving and over the past two weeks we have seen a significant increase in new users.