Ledger Vault Receiving Crypto Insurance
The Ledger Vault Nano Wallet is using their partnerships with institutional investors to receive brokerage insurance through Marsh. This banking institutions, with the assistance of Lloyd’s of London, will provide Ledger will a $150 million insurance policy. This announcement came on Thursday after leaks were released online to the financial public.
This report indicates that insurance corporations are becoming more comfortable with covering brokerages and firms maintaining digital assets. Genuine involvement of institutional investors requires insurance as a prerequisite to receiving their business. Over twelve months, multiple cryptocurrency exchange brokerages have acquired their version of custodian coverage. However, Ledger Vault isn’t custodial, which is requiring Marsh to reform existing digital policies.
The policy hasn’t taken effect yet, with Lloyd’s of London and Marsh still evaluating changes with existing digital policies. It’s known that their plan will cover third-party private key theft and provide coverage for hardware security modules at Ledger’s data centres. This extends to on-boarding coverage with the processing of clients. The last policy will provide coverage if an employee steals from Ledger’s accumulated profits.
What isn’t covered is third-party remote hacks, which is one of the most significant issues facing brokerages and exchanges today. Ledger’s solution to not receiving this restrictive policy is to implement a private key system, which forces responsible trading amongst their clientele. All clients using the Ledger Vault Wallet can create transactional controls that are regulated with government procedures, which is helping the corporation move from a hot wallet to an agnostic wallet.
The Senior Vice President at March McLennan Insurance Corp, Jennifer Hustwitt, spoke on the upcoming insurance platform. She said: “Clients that are part of this insurance program for Ledger Vault can obtain a dedicated limit that is dependent on the assets held on the Ledger Vault platform. It would be separate from the $150 million that Ledger is purchasing.”
The Vice President of Digital Operations with Arch, James Croom, also made a public statement. He said: “We have spent over six months working with the Ledger Vault team to develop a customized offering for their clients.”