Crypto Insurance a Promising Sector Despite Caution of Major Players

The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it. In terms of security, cryptocurrency exchanges that serve both as a marketplace and a store of the digital assets have become a hacker’s favorite target. Now that the cryptocurrency market has grown to its current capitalization of more than $200 billion, demand for crypto insurance is gaining traction.

Already, big-time insurers are emerging as major players in the market: Lloyd’s of London, a centuries-old insurer with a net worth of $45 billion, partnered with Coinbase last year to provide a $255 million policy in April this year.

Apart from Coinbase, other cryptocurrency custodians that have purchased insurance include Gemini, Kingdom Trust and Anchorage.

Why is there a need for crypto insurance?

Despite the remarkable technology backing cryptocurrencies, recent reports show that cybersecurity is still one of the biggest threats to the industry. Security research…