The landmark initiative, deemed the largest of its kind, offers a substantial insurance capacity of up to US$825 million and is accessible to Marsh clients worldwide.
The newly launched facility is designed to provide crucial support to organisations safeguarding digital assets, whether they are held offline in what is known as cold storage, or secured through alternative methods such as Multi-Party Computation. By addressing a spectrum of risks, including physical natural perils, third-party theft, and internal collusion, the facility aims to bolster security measures surrounding digital asset storage.
Backed by syndicates from Lloyd’s and prominent London-based international insurers, the facility signifies a collaborative effort to mitigate risks inherent in the burgeoning digital asset market. With industries across the board vying to establish themselves as custodial leaders amid the market’s exponential growth, the facility arrives at a pivotal juncture.
According to Marsh’s Global Technology Industry Risk Study 2023, half of respondents within the global technology sector are either actively engaged in or exploring opportunities related to digital assets. Moreover, 136 banks in the United States under the Federal Deposit Insurance Corporation are either planning or already involved in various digital currency initiatives, signaling a widespread adoption trend.
Developed by Marsh Specialty’s Digital Asset team in New York and London, the facility underscores Marsh’s commitment to providing comprehensive risk transfer solutions to firms operating within the blockchain, cryptocurrency, and digital asset spheres. As digital finance continues to reshape traditional financial paradigms, Marsh’s initiative stands as a testament to the industry’s proactive approach to managing emerging risks in an increasingly digital world.
Jacqueline Quintal, Global Digital Asset Leader, Marsh Specialty: “We anticipate continued focus on and activity in the global digital assets space, as organisations navigate the complex risk environment and interconnected, expanding ecosystem of stakeholders.”
She added: “Marsh’s facility provides custodians with protection for the key operational risks they face in the management of digital assets; we look forward to supporting clients globally in aligning their risk financing and evolving commercial strategies, as they focus on building their operational resilience and market presence in this fast-growing sector.”
