Insurance Market, Singapore's first online broker, has arranged insurance for customers that store crypto currencies with The Safe House, a vault facility owned by Singapore bullion dealer Silver Bullion.
“It is the first of its kind and will allow holders of crypto currencies the most safe way to store their private keys to protect their wealth,” said Mr Otbert de Jong, CEO of Insurance Market, in a media statement.
Owners of crypto currencies have private keys that act, simply said, as a password to their account. Who holds the private key can avail of the balance in an account, so the safekeeping of private keys is of the utmost importance. Loss or theft of a private key is disastrous. The Safe House has developed a unique safe “physical crypto storage” process that has become widely recognised standard, known as the Gregersen-Gono standard. That process has been assessed by Lloyd’s underwriters, who have given it the thumbs up by insuring the stored private keys and the account balances they represent.
Insurance Market worked intensively with Silver Bullion, the Safe House and the Lloyds underwriters to structure this facility to enable people to safeguard their assets. The standard is named after Gregor Gregersen, the Founder of The Safe House and its parent company Silver Bullion and Clint Gono their lead developer.
Insurance Market CTO Nelius Strydom says, ”Although the focus of our brokerage activities is digitised online insurance, this type of insurance will also serve the needs of personal clients with digital interests. Crypto currency holders run risks that they need to protect and that is the essences of what both Silver Bullion and Insurance Market enable here: to protect people’s wealth and health.”
Physical crypto storage is used in the cryptocurrency world by investors who want to preserve their digital assets for a long-term investment. Keeping them at exchanges and hosted wallets puts them at risk of losing all coins in an instant. Physical crypto storage entails generating and storing the crypto coin’s private keys in an offline environment such as a vault, away from the internet
Insurance Market was in the news in March when it announced that it will act as sponsor and lead of a group of insurance companies and distributors that will participate in the further development and roll-out of the new pilot insurance eco system “Inmediate” that will make insurance cheaper, easier and more accessible, using blockchain smart contracts.