Copper Reserves $500M as Insurance For its Crypto Offering

London-based cryptocurrency custodian Copper has set aside $500 million as insurance cover for digital assets in cold storage.

The cover was arranged by British-American multinational insurer Aon (AON) which utilized the services of a panel of insurers experts led by Canopius, a Lloyd’s of London syndicate. 

The level of growth in value and recognition that digital assets have received so far has led to increased interest in cold storage.

There is currently a growing demand for cold storage solutions as well as a means of protecting the assets offline from institutional-level industry which has equally adopted crypto and market participants as driving its insurance solution. 

As per the published statement, the $500 million insurance covers employee collusion, third-party theft, and physical loss related to digital assets that the firm holds. Notably, the company mentioned that this is one of the biggest arrangements in the industry to date. It follows Copper’s existing Aon-brokered crime insurance policy.

Copper’s Chief of Staff Greg Hall stated “Safeguarding digital assets is the central goal of our business, and now we have an extra level of security to reassure our clients. Copper will continue to work closely with the insurance market to ensure we have the most appropriate market-leading policies to support the growth of our business.”

Crypto Firms Freeze Customers’ Funds

Many industry players believe that the news of Copper’s $500 million Insurance in cold storage could not have come at a better time than this.

In recent times, several crypto firms have resorted to freezing customers’ accounts and halting withdrawals on their platforms owing to pressure from the crypto winter. The latest firm to join this trend is Sam Bankman-Fried FTX.

On Monday, it was rumored that FTX had halted withdrawal on its platform and was tending toward insolvency. Although the Chief Executive Officer tweeted to debunk the rumor, Binance CEO Changpeng Zhao also released a tweet that suggested that his firm was processing the acquisition of the FTX exchange.

“This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX and help cover the liquidity crunch,” CZ tweeted