- The insurance policy was taken up with a syndicate from the world’s oldest underwriter, Lloyd’s of London
- Matrixport hopes it will bolster its suite of custody offerings throughout frosty market conditions
Financial services firm Matrixport has secured critical insurance coverage as the crypto industry continues navigating liquidity crises that brought down some major players.
Matrixport said Sunday it locked in $50 million from Canopius, one of the largest syndicates operating under insurance giant Lloyd’s with more than $2.2 billion in premiums.
Lloyd’s is the world’s oldest insurance underwriter with roots stemming as far back as 1688. The group has been involved in crypto insurance since at least 2020.
The corporate body has launched multiple insurance policies directed at the digital asset industry covering both online and offline storage solutions.
Matrixport is led by crypto billionaire Jihan Wu, co-founder of Bitmain Technologies, the largest manufacturer of bitcoin mining rigs. Wu left the firm last year to run spinoff Bitdeer and Matrixport after a lengthy leadership dispute.
Several assets held in cold storage by Matrixport’s institutional custodian, Cactus Custody, will be protected including bitcoin, bitcoin cash, ecash, litecoin and ether, according to a statement.
Attempting to widen its revenue streams outside retail investment, Cactus Custody integrated with MetaMask Institutional at the beginning of the year via a new feature that supports multi-chain compatibility.
Matrixport’s fresh insurance coverage serves as a bid to attract future growth, despite a slump in both retail and institutional interest.
“The insurance coverage enhances our custody offerings and empowers clients to leverage our ecosystem in a meaningful way, especially for institutional clients where insurance coverage is a compulsory requirement,” Matrixport’s COO Cynthia Wu said in the statement.
Matrixport has kept a keen focus on its operations despite frosty market conditions and a liquidity crunch that crippled numerous crypto firms earlier this year, including Celsius and Voyager.
The firm snapped up Anthony DeMartino, head of risk strategies, institutional decentralized finance and derivatives trading at Coinbase in June where his prized Wall Street contacts formed part of Matrixport’s hiring decision.
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Source: https://blockworks.co/matrixport-signs-50m-insurance-policy-with-lloyds-syndicate/