BitGo launches custody service with over $100 million in excess insurance, first client Crypto.com sees 20% increase in token price

The cryptocurrency custody service provider BitGo announced that it will offer excess insurance to its customers in addition to its existing $100 million insurance coverage. The first project to accept excess insurance, Crypto.com, has also risen by nearly 20% in the past few days.

• Partnered with the UK insurance giant Lloyds to launch excess insurance policies
• Crypto.com ranked 21st in market capitalization

Founded in 2013, BitGo has attracted strategic investments from numerous venture capital firms including Goldman Sachs, Galaxy Digital Ventures, and Valor Equity Partners. According to data platform Crunchbase, the company has raised over $69.5 million in funding to date.

BitGo recently announced in February that it would provide a $100 million insurance plan for all of its custodied crypto assets, with the cap raised by the UK insurance giant Lloyds, covering incidents such as internal errors and network theft.

Note: Insurance is generally divided into "full insurance," "underinsurance," and "excess insurance." Excess insurance means the insured amount exceeds the actual value, potentially allowing the insurer to gain more than their losses, which is prohibited by insurance law. Therefore, the application of excess insurance to crypto assets may stem from expectations of future appreciation.

BitGo CFO Rodrigo Vicuna stated:

This service was launched based on customer feedback, as they wanted to purchase their own dedicated excess insurance, with BitGo's existing policy also provided by Lloyds.

It is reported that Crypto.com, dedicated to popularizing cryptocurrency payments, is the first institution to sign up for BitGo's excess insurance plan. Crypto.com has been extensively covered previously, and its token CRO has surged nearly 20% in the past few days, ranking 21st in market capitalization.

BitGo CEO Mike Belshe commented on the partnership:

Our customers are typically custodians of crypto assets (BitGo's main customers are exchanges and crypto lending platforms). This excess insurance policy provides additional protection for our customers and can be tailored to their specific needs.

Crypto.com CEO Kris Marszalek also noted:

BitGo has a robust virtual asset insurance program, expanding the protection for our custodied crypto assets and further enhancing the security of our customers' funds.

BitGo CFO Rodrigo Vicuna expressed great anticipation for BitGo's future development:

BitGo's goal is to become a "financial institution that provides comprehensive services to the institutional market." We are building deep relationships with customers, creating value for them, and establishing long-term, sustainable business models.

Related Reading

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