Canopius group, a global speciality (re)insurer, issued that its market-leading digital asset custody product will be underwritten from Singapore.
It is the first carrier on the Lloyd’s Asia platform to offer coverage locally for the custody of digital assets with the product being instantly accessible.
Custody refers to the creation and storage of private keys that enable the transfer of digital assets on a blockchain.
The product offers coverage that was previously only available in the Crime and Specie markets separately, and Canopius can give an individual line size of up to $130m for approved custodial solutions.
The solution will be made available to financial institutions and will include a wide range of digital assets such as cryptocurrencies, stablecoins, and crypto tokens such as non-fungible tokens and asset-backed tokens.
The launch is an expansion of the product Canopius Syndicate 4444 underwrites in London, responding to a rising demand from firms looking to invest in digital assets in Asia Pacific (APAC).
Nicholas Edwards, head of Specie, Canopius, said: “As the leading underwriter globally for digital asset custody insurance, we are delighted to make this product available locally in Singapore. To date, this class of business has been written primarily from London, so we’re pleased to be able to offer the specialist knowledge required to underwrite this class of business regionally, tailored to countries throughout APAC. We are looking forward to developing even closer working relationships with our clients and distribution partners in the region and being able to establish more touch points with local regulators who are facilitating the growth of this nascent sector.”
Paul Hackett, head of Short Tail – APAC & MENA, Canopius, added: “As the market matures, increasingly more established financial institutions are exploring the potential of digital assets for their business. Given regulators’ welcoming stance toward digital assets in APAC, notably in Singapore, Hong Kong and Japan, many of those businesses are choosing to expand here. However, while welcoming, their regulatory requirements are firm. Businesses interested in digital assets will need an experienced risk-bearing entity to help them manage the potential exposures of custody, which in turn will raise the bar for the security of the sector overall.”
