Canopius launches first digital asset custody policy on Lloyd’s Asia platform
Canopius launches first digital asset custody policy on Lloyd’s Asia platform | Insurance Business Asia
Insurance News
Canopius launches first digital asset custody policy on Lloyd’s Asia platform
Policy will protect generation and storage of private keys on the blockchain
Insurance News
By
Kenneth Araullo
Specialty (re)insurer Canopius has announced that it will underwrite a market-first digital asset custody product from Singapore. The proposition means that Canopius is the first carrier on the Lloyd’s Asia platform to provide coverage locally for the custody of digital assets.
In the realm of cryptocurrency, custody refers to the generation and storage of private keys, which, in turn, enable the transfer of digital assets on a blockchain. With this proposition, Canopius can offer an individual line size of up to $130 million for eligible custody solutions, as well as providing coverage that is traditionally only available in the crime and specie markets separately.
Available to financial institutions, the product covers a broad range of digital assets including cryptocurrencies, stablecoins, and crypto tokens, the latter of which include non-fungible tokens (NFTs) and asset backed tokens. The launch also marks the extension of a Canopius Syndicate 4444 product that the group underwrites in London which caters to a growing demand from the increasing number of APAC businesses that explore digital asset holdings.
Canopius head of specie Nicholas Edwards said that the firm is looking forward to developing even closer working relationships with its clients and distribution partners in the region as this nascent sector continues to grow.
“As the leading underwriter globally for digital asset custody insurance, we are delighted to make this product available locally in Singapore. To date, this class of business has been written primarily from London, so we’re pleased to be able to offer the specialist knowledge required to underwrite this class of business regionally, tailored to countries throughout APAC,” Edwards said.
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