Blue Vault: An Innovative Cold Storage Solution for Digital Assets
As the awareness, acceptance, and popularity of digital assets has increased and their value has soared, a vibrant ecosystem has emerged to support and service these assets and their owners. The expansion of cryptocurrency exchanges, depositories, issuers, wallets, and miners has led to a significant increase in risks that require an innovative risk transfer solution.
Cold storage insurance provides coverage for loss of digital assets from internal and external theft, damage, or destruction of private keys, which are stored in depositories’ secure vaults. For decades, the specie market has been insuring these vaults which have traditionally stored gold, diamonds, cash, and other valuable items.
The specie market can provide up to US$3 billion in capacity for traditional specie risks that include their valuables. Capacity for cold storage risks is evolving and growing, and specie insurers are expanding their expertise in the cryptocurrency market to enable clients to transfer their risk in the most effective manner.
Through Marsh, digital asset holders can access Blue Vault, a first-of-its-kind consortium that can provide a limit of up to US$150 million per insured through the Lloyd's market.