GK8 and USI Insurance Services have joined forces to create a new, elite insurance plan to cover digital asset losses for GK8 customers.
The move signals another step towards stability and trust being built within the Defi space as customers can insure their digital assets up to the value of US$1bn.
According to Elliptic, despite the onset of the crypto winter, non-fungible token (NFT) scams are skyrocketing, with investors reporting over $100mn worth of NFTs as stolen following scams between July 2021 and July 2022.
These events contribute to a steady and growing lack of trust in the crypto market.
Based in Tel Aviv, GK8 is the leading institutional-grade digital asset custody platform with Defi, staking, NFT, trading, and tokenization support.
Its plan to partner with USI Insurance services will enable GK8’s customers to provide premium insurance coverage as well as institutional-grade security with the financial safeguard to match.
GK8’s regulation-ready solution includes both a Cold Vault as well as an MPC Vault. The company’s unique Cold Vault is the only solution in the market that can create, sign, and send blockchain transactions without receiving digital input from the internet. This solution grants institutions an unparalleled level of security, leaving no openings for hackers to exploit.
The $1bn insurance coverage enables GK8’s customer’s assets to be stored in the Cold Vault and up to $125mn for assets stored in the MPC.
Both these insurance protection plans are significantly higher compared to any insurance policy for digital assets offered in the market today, reducing risk considerably and acting as a gateway for self-custody for institutions.
Currently, insurance provided by custody technology vendors is limited. Very often, customers have access to pooled insurance (split among all customers) amounting to $30-40mn in cover protection.
USI’s partnership enables GK8 customers to make use of the insurance policy, with exclusive coverage amounting up to $1bn for each client.
This unique offering is now the highest limit of insurance available on the market today for digital asset investors.
Coverage of up to $125mn per customer is also available to protect against the risk of theft resulting from attacks on assets stored in the GK8 MPC vault.