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GK8 increases insurance cap on digital assets to $1B

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Digital asset custody platform GK8 has partnered with USI Insurance coverage Companies to develop its insurance coverage coverage for institutional prospects — a transfer the corporate mentioned would incentivize banks and different monetary establishments to start out investing in cryptocurrency. 

The insurance coverage coverage presents as much as $1 billion of protection per consumer for digital property saved in GK8’s chilly vault and as much as $125 million for property saved in MPC custody, the corporate introduced on Nov. 28. GK8 mentioned the insurance coverage caps are considerably larger than every other digital asset insurance policies in the marketplace in the present day.

Lior Lamesh, GK8’s co-founder and CEO, mentioned the brand new insurance coverage protection would “incentivize new institutional gamers to confidently step into the crypto house” and allow current prospects to extend their holdings of digital property.

Lamesh advised Cointelegraph that GK8’s shoppers “want entry to the next cap of insurance coverage with a view to improve the peace of thoughts and shield all of the [assets under management] of their shoppers absolutely.”

USI Insurance coverage Companies, GK8’s underwriting associate, is an insurance coverage brokerage headquartered in Valhalla, New York. The corporate generated almost $2 billion in income in 2021.

Institutional traders have proven a keen interest in adopting digital assets, however considerations round regulation and safety have restricted uptake to this point. The collapse of crypto alternate FTX might have exacerbated these considerations, with Binance CEO Changpeng Zhao opining that investor sentiment might take years to get better. In the meantime, former United States presidential candidate Andrew Yang advised the Texas Blockchain Summit on Nov. 18 that the FTX collapse might create an “urge for food” for harsher regulation.

Associated: Crypto insurance a ‘sleeping giant’ with only 1% of investments covered

Calls to curtail crypto adoption have grown louder in Washington, with senators Elizabeth Warren, Tina Smith and Richard Durbin urging Fidelity Investments to reconsider providing retirement planners entry to a Bitcoin (BTC) funding product.