We have now another crypto custodian claiming that it has procured a crypto insurance coverage that is better than its competitors.
In a blog post, Nathan McCauley, Co-founder and CEO of Anchorage, says it has a fully insured solution for storing digital assets for institutions and investors.
Anchorage asserts that most custodian’s architecture forces a trade-off between security and usability, resulting in risk variations which is then reflected in the type of insurance they secure. For instance, one custodian may have a specie insurance that covers assets in cold storage, which doesn’t cover third party hacks and losses due to compromised key generation and transaction processes. Another custodian may have a crime insurance that covers assets in transaction, which focuses on hot wallet holdings instead of cold storage.
Investors don’t face such trade-offs in Anchorage. Their solution is built on a new technology which goes beyond cold storage to enable online transactions with offline assets. Consequently, Anchorage was able to work with their insurance broker and insurers to draft a new insurance policy which covers digital assets under custody end-to-end throughout their entire life cycle.
