Anchorage Cryptocurrency Custodian Provider to Fully Insure Digital Assets via Aon
- Anchorage’s novel storage solution has been built using a technology that goes beyond traditional cold storage concepts and allows its users to enable online participation with offline assets.
- Owing to its unique framework, the firm is able to cover digital assets “throughout their entire life cycles.”
As per an all-new blogpost released by crypto custody provider ‘Anchorage’ earlier today, the firm is now providing its clients with an insured solution “for storing their digital assets”. To further elaborate on the matter, we can see that the company’s “end-to-end” insurance model will be powered by the British global professional services provider ‘Aon’.
In regards to the matter, a representative for the company was quoted as saying:
“Here’s the problem with crypto custody insurance: not all coverage is equal. Most custodians’ architecture uses a combination of hot wallets and cold storage, and policies may vary from one part of the architecture to another. This approach can result in coverage gaps.”
For those of our readers who may not be aware, BitGo currently offers its clients with insurance coverage of up to $100 million. However, this package does not provide any security assurances in specific scenarios where BitGo and its clients both hold keys to a specific account — especially one that gets entangled in a third-party hacking incident.
Other Details Worth Highlighting
- As things stand, it is still not entirely clear as to what the exact cap on Anchorage’s coverage scheme is. However, according to a spokesperson for the company, “it is lower than anything that other firms have announced till date”.
- Anchorage is backed by many big-name players such as Andreessen Horowitz, Max Levchin, Elad Gil and Mark McCombe (amongst others).
- Till date, the company has been able to raise a total of $17 million to fund its operational and development activities.
Last but not least, it should be highlighted that Anchorage’s latest market solution will surely help lure in a lot of investors to its new offering. However, only time will tell whether the firm is able to eat into the existing market base of other established players such as Coinbase and BitGo.