Marsh launches facility providing cover up to USD 825 million for digital asset custodians

2 April 2024 — Andrei VICTOR
Global insurance broker Marsh, part of Marsh McLennan, announced the launch of a new insurance facility for custodians of digital assets, including financial institutions. “The largest facility of its kind, it provides insurance capacity up to USD 825 million and is available to Marsh clients globally”.

The facility was developed by Marsh Specialty’s Digital Asset team in New York and London, which offers risk transfer solutions to firms globally that operate in the areas of blockchain, cryptocurrency, and digital assets.

The facility will support those organisations with digital assets held offline – known as cold storage – as well as those seeking to cover certain elements of risks for assets secured by Multi-Party Computation (MPC) or other custody solutions which do not operate entirely offline.

Backed by Lloyd’s syndicates and London-based international insurers, the facility will support organisations in protecting their digital assets against risks related to physical natural perils, third party physical theft, and internal collusion by those employees responsible for secure storage.

Organisations in a wide array of industries are seeking to establish themselves as key players in custody following a decade of substantial growth and maturation of the digital asset market.

According to Marsh’s Global Technology Industry Risk Study 2023, 50% of respondents in the global technology industry are already operating in or exploring opportunities around digital assets. Further, 136 US banks under the Federal Deposit Insurance Corporation are planning or are already involved in various initiatives related to digital currencies.