Civic’s Hot Wallet to be Backed by $1M Insurance Policy Through Coincover Partnership
The non-custodial and multi-signature wallet Civic Wallet is now offering a $1 million insurance from Coincover.
Established as one of the biggest decentralized identity providers in the crypto industry, Civic Technologies (CVC), is the first non-custodial wallet company offering $1 million protection. At the moment, the wallet is in beta.
The CEO and co-founder of Civic, Vinny Lingham, said the protection provided from the company is similar to the one from the Federal Deposit Insurance Corporation (FDIC). Here are his exact words on this:
“This is the first time that both technical and non-technical users can feel safe about their holdings. Until now, people had to keep their coins in the cold storage, but now they don’t have to worry about it as their holdings are insured up to $1,000,000 just like a bank account with the FDIC.”
In the meantime, David Janczewski, the CEO of Coincover, said he’s not running an insurance company, but one for crypto security and protection.
Advantages of Multi-Signature Wallets and Civic
With Civic Wallet being multi-signature, the user stores 1 key, the custodian BitGo another one and Civic the third one, which will migrate to Coincover soon. This means that in case something happens with Civic, users coins won't be lost.
Another great thing about it is that legal heirs can recover funds from the wallet, which only works for US residents at the moment but will expand at a global level and support all BitGo’s coins. The coverage offered by Civic is free for now, but Lingham said they may charge accounts with more than $1 million in cryptocurrency a fee.
Civic Wallet has to abide by strict Know Your Customer (KYC) rules by supplying user identification issued by governments and using facial recognition identification technology. Users won’t have to leave the wallet in order to buy crypto and connect bank accounts. The insurance couldn’t have had a better time to arrive, seeing cryptocurrencies held in wallets are growing day by day in numbers.
Users Will Automatically Qualify for the Insurance
The $1 million insurance will be automatically activated, so users won’t have to do anything in order to get it. The coins covered are Bitcoin (BTC), USDC and Ethereum (ETH), which will be stored and bought straight in the app, only with a bank account.