Nexus Mutual Expands Beyond DeFi, Now Provides Insurance Cover for CeFi
DeFi insurance provider Nexus Mutual has announced Custody Cover's launch for the users of centralized exchanges and custodians. This means users can now purchase the insurance cover for the funds put into an organization to safely keep their crypto assets’ private keys on behalf of them.
It will cover the users if the custodian gets hacked and the user loses more than 10% of their funds or if withdrawals have been halted for more than three months. Initially, six custodians are supported: BlockFi, Nexo, Celcius, inLock, Ledn, and Hodlnaut.
Nexus Mutual’s second and the latest product aims to “provide protection outside of the DeFi space.” In the long-term, the idea is to cover risks both in and outside the crypto space.
“Having trustless coverage for CeFi services is hugely market expansionary for DeFi,” said the head of research at the crypto fund, The Spartan Group.
A building block for the broader ecosystem, Custody Cover is working towards encouraging more widespread adoption and DeFi onboarding by helping protect newcomers, said the team. A partner of the crypto fund, The Spartan Group, noted,
“Given the amount of assets sitting with CeFi lenders, this move could scale Nexus' active cover by a multiple of current cover. Potentially very accretive to NXM over time.”
This DeFi project has about $100 million in TVL (total value locked), while its token NXM is trading at $23.90.