Marsh, the insurance broker and risk advisor subsidiary of Marsh McLennan, has launched a new global insurance facility providing coverage up to $825 million for digital asset custodians.
Developed by Marsh Specialty’s Digital Asset team, this facility is designed to assist organisations storing digital assets offline, as well as those utilising Multi-Party Computation (MPC) or similar custody methods that aren’t entirely offline.
Supported by Lloyd’s syndicates and international insurers based in London, the facility helps organisations protect their digital assets against various risks, including physical natural disasters, third-party theft, and internal collusion by employees responsible for secure storage.
Jacqueline Quintal, Managing Director & Digital Asset Leader at Marsh, explains, “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.”
This initiative is likely prompted by the increasing participation of industries, notably in global technology and banking sectors, in digital asset custody in recent years. This surge can largely be attributed to the significant growth and development within the digital asset market.
“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,” Quintal adds.
