Insurance Market has arranged insurance for customers who store crypto currencies with The Safe House, a vault facility owned by Singapore bullion dealer Silver Bullion.
Owners of crypto currencies have ‘private keys’ that act as password to their account. One who holds the private key can use the balance in the account, so it is very important to keep private keys safe.
Insurance Market CEO Otbert de Jong said: “It is the first of its kind and will allow holders of crypto currencies the most safe way to store their private keys to protect their wealth.”
Loss or theft of a private key can be disastrous. The Safe House is claimed to have developed a safe physcial crypto storage process that has become a widely recognised standard, which is known as Gregersen-Gono standard.
The standard is named after Gregor Gregersen, the Founder of The Safe House and its parent company Silver Bullion and Clint Gono their lead developer.
Physical crypto storage is used by investors, who want to preserve their digital assets for a long-term investment. By keeping them at exchanges and hosted wallets puts them at risk of losing all coins in an instant.
Physical crypto storage entails generating and storing the crypto coin’s private keys in an offline environment such as a vault, away from the internet.
Insurance Market also claims that this process has been assessed and approved by Lloyd’s underwriters by insuring the stored private keys and the account balances that they represent.
The online insurance broker has worked with Silver Bullion, the Safe House and the Lloyds underwriters to structure this facility to enable people to safeguard their assets.
Insurance Market chief technical officer Nelius Strydom said: “Although the focus of our brokerage activities is digitised online insurance, this type of insurance will also serve the needs of personal clients with digital interests.
“Crypto currency holders run risks that they need to protect and that is the essences of what both Silver Bullion and Insurance Market enable here: to protect people’s wealth and health.”
The Safe House Director John Tay said: “The insurance we have obtained has comprehensive coverage that protects crypto currency owners from loss of their stored private keys. I believe it will give our customers peace of mind knowing that their crypto wealth is truly secure with us."
Image: Insurance Market arranges first crypto currency storage insurance. Photo: Courtesy of Insurance Market.