Significant Expansion of BitGo’s Innovative Insurance Program
PALO ALTO, Calif.–(BUSINESS WIRE)–BitGo, the leader in digital asset financial services, announced today it has surpassed $700M of total Crime/Excess Specie insurance capacity.
In 2020, BitGo became the first digital asset custodian to offer clients the ability to purchase their own dedicated excess limits above BitGo’s $100 million “all customer” Crime/Specie policy at pre-agreed rates. Due to strong demand from institutional custody customers, BitGo’s Dedicated Customer Excess Specie insurance offering has expanded by over $600M to emerge as the largest in-force cold storage Specie program placed to date.
“BitGo was one of the first service providers to build a strong insurance program for crypto,” said Mike Belshe, CEO of BitGo. “Today, due to BitGo’s technology and scale, we’re able to offer a lower cost Dedicated Customer insurance program on top of BitGo’s secure cold storage system. This milestone demonstrates that the offering has been very popular with clients seeking the ultimate secure and insured storage.”
Nick Edwards, lead underwriter on the program and Head of Specie at Canopius, a Lloyd’s of London syndicate, says: “We are pleased that the Dedicated Customer Excess Specie insurance we put in place in 2020 has delivered in supporting BitGo’s Custody offering. In less than 18 months, we have seen committed capacity to the BitGo cold storage program increase seven-fold, which attests to the quality of its secure solution and the appetite among institutional investors for such a program.”
In 2019, BitGo innovated the digital asset insurance marketplace by offering a comprehensive and transparent insurance protection up to $100M at no additional cost to all BitGo Custody clients.
BitGo partnered with insurance brokers Woodruff Sawyer. and Paragon International Insurance Brokers of London. “It’s very exciting that we were able to expand this program to accommodate the needs of BitGo’s clients,” said Jacob Decker, Vice President, Director of Financial Institutions at Woodruff Sawyer. “As we see more institutional clients coming into crypto, it’s vital that we keep innovating to ensure that demand is met. This is a new world and our London partners Paragon did a phenomenal job educating the market and expanding support from both existing partners, as well as bringing new carriers into this emerging product.”
The key features of the Expanded Specie Insurance are:
- Highly-competitive premiums due to BiGo’s under lying $100M program
- Adjustable limits
- Pro-rated premium so clients only pay for the relevant period of protection
BitGo is the leader in digital asset financial services, providing institutional investors with liquidity, custody, and security solutions. In 2020, BitGo launched Prime Trading and Lending, as well as BitGo Portfolio and Tax, providing clients with a full-stack solution for digital assets. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets and established BitGo New York Trust in 2021. BitGo processes over 20% of all global Bitcoin transactions, and supports over 400 coins and tokens. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and institutional investors and spans more than 50 countries. BitGo is backed by Goldman Sachs, Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Redpoint Ventures, and Valor Equity Partners. For more information, please visit https://bitgo.com
The information in this press release is not an offer to sell or solicitation of an offer to buy an interest in any investment or for the provision of any investment management or advisory services. Custody services are offered through BitGo Trust Company, a South Dakota chartered trust company and BitGo New York Trust, a New York chartered trust company. BitGo is not registered with the SEC as an investment advisor or custodian, and does not offer legal, tax, investment, or other advice. Please consult your legal/tax/investment professional for questions about your specific circumstances.
BitGo Trust Company, BitGo NY Trust Company, BitGo Inc., and BitGo Prime LLC are separately operated, wholly-owned subsidiaries of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, CA.
About Woodruff Sawyer
As one of the largest independent insurance brokerage and consulting firms in the US, Woodruff Sawyer protects the people and assets of more than 4,000 companies. We provide expert counsel and fierce advocacy to protect clients against their most critical risks in property and casualty, management liability, cyber liability, employee benefits, and personal wealth management. An active partner of Assurex Global and International Benefits Network, we provide expertise and customized solutions where clients need it, with headquarters in San Francisco, offices throughout the US, and global reach on six continents. For more information, call 844.972.6326, or visit woodruffsawyer.com.