In an announcement on 11th December, the Gibraltar Blockchain Exchange (GBX), a subsidiary of the Gibraltar Stock Exchange, revealed that it is now providing insurance coverage for crypto assets listed on its platform.
GBX has partnered with Gibraltar based Callaghan Insurance to provide the policy to cover both hot (online) and cold (offline) wallets listed on the GBX Digital Asset Exchange. GBX CEO Nick Cowan said, “This represents an important step in attracting users who require strict assurances around the security of their assets.”
This news follows hot on the heels of last month’s announcement that the GBX had received a licence from the Gibraltar Financial Services Commission (GFSC) under the jurisdiction’s new regulatory framework for distributed ledger technology (DLT), indicating that things are moving forward apace in the jurisdiction.
According to Coindesk, the crypto insurance market is estimated to be worth around $6 billion, however, there are reports that there is insufficient insurance available, particularly in light of the fact that the top three exchanges handle more than $1 billion in trades each day. Coindesk explained, “One reason for the shortage is that right now there’s a chicken-and-egg problem for the insurance industry: there is almost nothing to go on in terms of a history of losses and claims, which underwriters crave to model the risks involved.” As things stand, Coinbase is taking up the lion’s share of the insurance on offer.
But that does not stop GBX from providing digital asset insurance, and it is not alone. In October, Gemini Trust Company, an exchange co-founded by Cameron and Tyler Winklevoss, announced it would offer protection for digital assets through a consortium of insurers arranged by global professional services firm Aon.
And the centuries old Lloyd’s of London is also getting in on the cryptocurrency insurance act: Kingdom Trust, a cryptocurrency custodian, announced in August that Lloyd’s was covering it for crypto theft.