Marsh unveils new digital asset facility

Insurance broker Marsh has launched a new insurance facility for custodians of digital assets.

The new facility provides insurance capacity of up to $825m (£654m) and is available to Marsh clients globally.

It will support those organisations with digital assets held offline – known as cold storage – as well as those looking to cover certain elements of risks for assets secured by multi-party computation (MPC).

Such risks include those related to physical natural perils, third party physical theft and internal collusion by those employees responsible for secure storage.

The facility is backed by Lloyd’s syndicates and London-based international insurers.

Jacqueline Quintal, global digital asset leader at Marsh Specialty, said: “Marsh’s facility provides custodians with protection for the key operational risks they face in the management of digital assets.

“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.”

Expansion

The facility was developed by Marsh Specialty’s digital asset team in New York and London.

It came after Marsh’s 2023 global technology industry risk study revealed that half of 300 risk management leaders worldwide were either currently engaged with or exploring digital asset opportunities.

”We anticipate continued focus on and activity in the global digital assets space, as organisations navigate the complex risk environment and interconnected, expanding ecosystem of stakeholders,” Quintal said.