The move highlights growing institutional confidence in Binance and recognition of further adoption to come.
Binance Custody Protects Investors
Binance Custody has taken important steps to secure insurance funds and solidify its protection of investors.
The institutional-grade digital asset custody solution announced the important development via a press release on March 10. The development will see Binance move to cover assets in segregated and cold storage against physical loss, damage, theft, or internal collusion. The press release noted that the insurance is underwritten by Arch Syndicate 2012 at Lloyd’s of London and brokered by the world’s largest independent brokerage Lockton Companies’ specialist team LEAP (Lockton’s Emerging Asset Protection).
“Binance Custody is focused on helping users manage their journey into digital assets securely. We are pleased to work with LEAP to provide additional protection for assets in our care. Users can take comfort in knowing that our custody solution is protected even in the unlikely event of physical loss or damage,” said Cathy Yu, Head of Binance Custody. “We can further customize insurance solutions to meet requirements.”
There is a recognition here that insurance is an integral part of any comprehensive custody solution for institutional clients, and cryptocurrency’s rapid development can bring up uncertainties for underwriters in assessing risk and pricing. The move does, however, signal more confidence and in turn greater corporate institutional acceptance.
In being able to secure this development, Binance Custody had to successfully pass the risk profile evaluation by demonstrating its industry-leading security standards, including multi-party computation, MultiSig for withdrawal requests and added hardware isolation. All of this culminates in the fact that Binance is gaining more confidence from significant institutions.
“Insurance plays an important role in the success of any business, including those in the blockchain technology and digital asset spaces,” Sarah Downey, Senior VP and Head of Lockton’s LEAP team, commented. “We are honored to have had the opportunity to create an innovative insurance solution that fits Binance Custody’s specific needs. It exemplifies Lockton’s commitment to helping the blockchain/digital asset industry continue to grow.”
With cryptocurrency seeing the rise of institutional and corporate interest rapidly grow, the expectation is that this will continue throughout 2022 as we see a greater range of products and more adoption.
Source : bsc.news
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