Policy expands as the company sees rapid growth, reaching the 2M user milestone
Crypto.com has secured a US $100M direct insurance policy led by Arch Underwriting at Lloyd’s Syndicate 2012. This is the largest coverage that Crypto.com has secured for its cold storage assets on custodial partner Ledger Vault. The new policy brings Crypto.com’s total cryptocurrency insurance to $360M, including direct and indirect coverage via custodians. It will significantly expand security protection for its rapidly growing user base, which has just surpassed 2+ million, against physical damage or destruction, and third-party theft.
As cryptocurrency adoption rises, insurance coverage has lagged behind. The total market value of cryptocurrencies has grown to $250-300B today, however Forbes reports that there exists only $1B available insurance coverage, leaving the vast majority of crypto assets unrecoverable amidst a rise in fraud and thefts that reached $4.5B globally in 2019. According to a recent survey Crypto.com conducted with the Economist Intelligence Unit (EIU), security concerns were cited by nearly ⅓ of respondents as a barrier to greater digital currency adoption.
Kris Marszalek, Co-founder and CEO of Crypto.com said: “The crypto market is woefully under-insured, which puts both custodial firms and users at risk of theft or loss of their assets and presents a roadblock to mainstream crypto adoption. We have committed deeply to the security of our platform, a top concern shared by early adopters and those new to crypto. This additional insurance policy from Lloyd’s, coupled with our previous large policy and ongoing proactive ‘Defense in Depth’ approach, provides another layer of protection for our users.”
Recent Crypto.com Growth
Crypto.com also announced that its platform has reached 2 million users, a key milestone achieved just six months after the company hit its 1 million user mark. The rapid growth in users led to transaction volumes on Crypto.com’s platform more than tripling between December 2019 and April 2020. The Crypto.com App has reached top 50 in the Finance category in the UK, France, Italy and Spain, with plans to ship its cards to the rest of Europe soon. The company’s CRO token saw the third-highest growth on market cap in Q1 2020 according to CoinMarketCap.