The developer of Nano hardware wallet, Ledger is set to attract institutional investors to start using its wallet to store cryptos and has brought in insurance broker Marsh to help with the plan.
Now, Marsh has announced that it has negotiated an insurance cover worth $150 million from insurance giant Lloyd’s through its London syndicate, Arch. The insurance policy will cover clients of Ledger Vault technology to custody different cryptos.
The new developments will open the door for Ledger Vault to offer institutional investment services. It is important to note that firms wishing to offer institutional investment services must acquire insurance cover for various virtual assets. The move also signifies that insurance firms are now embracing the crypto industry.
As CoinDesk reports, there are lots of crypto firms that have taken insurance covers in the last one year, however, unlike them, Ledger Vault does not offer custodian services but will allow investors to use its tools to custody their crypto assets.
According to Demetrios Skalkotos, Ledger Vault’s global head explained that customers will not be required to add any extra fee for the insurance cover. He said,
“The policy also covers the clients’ onboarding process, their personal security devices and the secure encrypted communication channel that is established when using the Vault platform. This unique policy is a true end-to-end solution that gives our customers the flexibility to both store and move funds without compromising on security and governance.”
The insurance coverage will caution the customers against any loss of private keys especially in cases of breach of security of the hardware of the data centers. In addition, the policy will also cover the entire procedure of on-boarding that comprises the process of generating the private keys and against internal staff thefts.
The insurance policy will not cover any theft or loss of money through a hack by a third-party or such cases as reported from crypto exchanges firms in the globe. However, the insurance cover mandates Ledger Vault to ensure that private keys are kept away from the internet.
Institutional investors willing to use Ledger Vault tools will come up with their transaction controls as well as governance aspects. This means that Ledger Vault will not use the hot and cold wallets as offered by majority of the crypto custodians in the market.
A spokesperson from Arch elaborated that representatives from the two firms spent more than six months to come up with a tailor-made insurance cover for Ledger Vault clients.