The Bittrex exchange announced on Wednesday, January 29, the hiring of insurance coverage of up to $ 300 million.
According to a text on the company's official blog, the coverage will help protect the encryption stored in Bittrex's cold storage wallets. Offline storage refers to keeping private keys on a hardware device, disconnected from the Internet, such as a paper wallet or a hardware wallet, for example.
The Bittrex insurance policy was contracted through the Marsh insurance broker and was directed by Lloyd’s Arch Syndicate 2012, according to the announcement. Bittrex said its request for coverage was approved "after successfully demonstrating the extensive internal security and compliance protocols for the exchange."
"We work closely with Bittrex to create a customized insurance solution to meet the specific needs of the cryptocurrency industry," said Sarah Downey, co-leader of the digital asset risk transfer (DART) team. ) by Marsh.
The scope of Bittrex coverage set a record value in this market. Earlier this month, the Gemini exchange created its own insurance company with a coverage of $ 200 million for its offline storage solution. Coinbase, in turn, has a coverage of $ 255 million for assets in online portfolios.