Lockton Cos. The LLC said Wednesday it is now offering digital custody insurance.
The facility is backed by Lloyd’s syndicate, giving Lockton access to the London market capacity, which is estimated to be over $850 million for custody coverage, Lockton said in a statement.
The coverage was developed by Lockton’s new asset protection team, which manages the underwriting process, and has tailored programs with different limits and cost structures, the statement said.
Custody insurance, sometimes called cold storage protection, provides compensation in relation to private keys that are stored in secure locations, including those that are part of a multi-party computing solution or completely offline.
Neil Daly, head of Lockton̵7;s UK emerging assets team, said securing such cold storage has historically been difficult.
Lockton’s new asset protection team is a global group of more than 35 employees focused on companies operating in blockchain and digital assets.