Insurance brokerage firm Marsh has introduced a digital asset custody insurance product with a capacity of up to $825 million, marking it as the largest facility of its kind. The firm, a part of the professional services giant Marsh McLennan and boasting a workforce of over 45,000, revealed this in a press release on Tuesday.
Marsh stated that this new insurance product is designed to assist organizations managing digital assets stored offline in cold storage, as well as other custody solutions like Multi-Party Computation (MPC), where cryptographic keys are divided into shards.
Historically, crypto insurance offerings have been scarce, with many exchanges and large trading firms relying on self-covering reserves to mitigate potential losses. Marsh, leveraging its ties to the Lloyd’s of London insurance market, has been at the forefront of crypto insurance, securing substantial coverage in the hundreds of millions for platforms such as Crypto.com through partnerships with companies like Ledger and Lloyd’s underwriter Arch Insurance. The development of this new crypto insurance facility was spearheaded by Marsh Specialty’s Digital Asset team based in New York and London.
Jacqueline Quintal, Global Digital Asset Leader at Marsh Specialty, remarked, “Marsh’s facility offers custodians protection against key operational risks involved in managing digital assets. We are committed to supporting clients worldwide in aligning their risk management and commercial strategies as they focus on enhancing their operational resilience and market presence in this rapidly expanding sector.”