Marsh has launched a new global insurance facility for custodians of digital assets that it says is the largest of its kind, offering $US825 million ($1.26 billion) capacity.  

Backed by Lloyd’s syndicates and London-based insurers, the facility will protect against risks related to natural perils, physical theft and collusion by employees responsible for secure storage. 

The facility was developed by Marsh Specialty’s Digital Asset team in New York and London, which offers risk transfer solutions globally in blockchain, cryptocurrency and digital assets.  

Marsh Specialty Global Digital Asset Leader Jacqueline Quintal says continued focus is expected on global digital assets as organisations navigate complex risks and an “interconnected, expanding ecosystem of stakeholders”. 

“Marsh’s facility provides custodians with protection for the key operational risks they face in the management of digital assets,” she said.  

“We look forward to supporting clients globally in aligning their risk financing and evolving commercial strategies, as they focus on building their operational resilience and market presence in this fast-growing sector.” 

The new facility is available to Marsh clients globally and supports organisations, including financial institutions, with digital assets held offline – known as cold storage.  

It also partly covers risks for assets secured by Multi-Party Computation or other custody solutions which do not operate entirely offline.