Gibraltar Blockchain Exchange (GBX) to Offer Insurance for Digital Assets
According to a recent announcement, the Gibraltar Blockchain Exchange (GBX) has established a partnership to offer insurance for the digital assets kept in its custody. The added security and peace of mind found through insurance is predicted by some to attract institutional investors into the realm of digital assets.
Details of the new Digital Asset Insurance to be Offered by GBX
GBX has partnered with Gibraltar-based firm Callaghan Insurance, along with their partners Paragon Insurance Brokers, to ensure that there is “fit for purpose insurance coverage available for innovative blockchain-based companies”.
GBX is a cryptocurrency exchange which provides services including both initial issuance as well as secondary market trading. The new coverage will safeguard assets in the custody of GBX, to include both hot and cold wallets.
Nick Cowan, GBX CEO, described how the new service offered is set to attract users who need a platform focused on regulatory compliance and client security.
“This offering is only possible because of the confidence derived from the fact that the GBX has always been committed to building a platform focused on the highest regulatory standards and the strictest due diligence processes.”
Callaghan Insurance Managing Director Bruno Callaghan discussed the added benefits of insurance in the quickly developing Distributed Ledger Technology (DLT) sector.
“I am delighted that Callaghan have been able to procure, after much research and collaboration with the London insurance market, a bespoke, fit for purpose coverage option that affords our clients and the jurisdiction the necessary protection to move forward confidently in the DLT arena.”
GBX is not the only platform to announce insurance coverage for digital assets in recent headlines. Bakkt— the highly anticipated Bitcoin futures contract platform— has also announced insurance coverage for the bitcoin that it will safeguard in cold storage.
How Insurance Policies and Clear Regulations will Attract Institutional Investors
The increase towards insurance coverage in the digital asset industry is likely an attempt to attract institutional investors. Another area which attracts such a target audience is regulatory compliance.
One of the only sectors in the digital asset space which provides clear regulatory guidelines is the emerging security token industry. In the United States for example, the SEC has suggested security tokens need to abide by existing securities laws.
GBX is also connected to security tokens: it’s a subsidiary of the Gibraltar Stock Exchange (GSX), which was recently announced as a founding member of the Millbrook Accord. The group is comprised of 12 blockchain-based enterprises that are developing open source protocols aimed at security token interoperability and compliance.
Despite Bitcoin’s plunge throughout 2018, the digital asset space has relentlessly made significant progress. Some predict an even brighter future, claiming the security token industry will surpass the entire cryptocurrency market cap in 2019.
What do you think about the increase of insurance coverage for digital assets? Will this bring the necessary security for institutional investors to enter the digital asset space? Let us know what you think in the comments below.
Image courtesy of Coinwire.