2 mins read Crypto asset custody provider Copper has secured $500m of cold storage insurance cover in a new partnership with specialty insurer Canopius.
The deal was brokered by insurance consultancy firm Aon (AON).
An announcement on Copper’s company website states that the move follows “a rigorous assessment of Copper’s risk management protocols”.
Copper.co chief of staff Greg Hall commented that “safeguarding digital assets” is the most important part of the business, and that this added level of security is meant to reassure its clients.
The statement noted that the value of digital assets has rapidly and significantly grown over the last few years, citing a current market capitalization of more than $1 trillion.
According to the Copper team, this has increased the demand for cold storage, which provides coverage for losses of digital assets coming from internal and/or external theft, damage and so on. It’s very secure because it’s offline.
Aon and Canopius worked with Copper to “tailor a solution”, so the new partnership answers this need with a customized approach.
Aon and Copper previously worked together as well, with Aon brokering Copper’s crime insurance policy, so this was a natural fit for the pair.
Copper’s latest funding round might have spurred some of this action as well. Further funding probably means further contingencies as well.
British multinational universal bank Barclays took a stake in Copper recently, committing an unspecified amount in that funding round, with reports suggesting it’s in the “millions of dollars” range.
Investing in crypto during a “crypto winter” is usually a sign that the company behind the investment can appreciate the long-term value of the industry. This is doubly true if the investor is one of the most recognizable banking names in the world.
However, Barclays is still refusing to work with Coinbase and Binance, so the Copper stake probably shouldn’t be read into too hard in that regard.
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