Nexo’s Custodial Assets Now Insured for $100M
At Nexo, the safety of clients’ funds is our first priority. Recognition of this fact by the blockchain community has allowed Nexo to process more than $300,000,000 in just 7 months and develop the most enhanced and seamless lending experience but also the means for clients to earn up to 6.5% in interest on their idle crypto assets.
Now, Nexo’s partners are pushing the boundaries of innovation yet again by providing the industry’s first insurance for custodial assets and Nexo’s clients will benefit from that.
- Nexo is the only crypto lender and ‘Earn Interest’ product provider that stores client’s assets with an insured qualified custodian at no extra cost.
- The insurance policy covers losses of up to $100M and is provided by BitGo’s arrangement with Lloyd’s.
- Nexo deploys state-of-the-art security, including 24/7 fraud monitoring and customer support, as well as Cryptocurrency Security Standard Level 3, among other measures, to ensure the ultimate safety of clients’ funds.
Who Provides the Insurance for the Funds of Nexo’s Clients?
Cold storage Nexo Wallets are provided by the leader in multi-signature encryption technology BitGo. These custodial assets are covered for up to $100,000,000.00 by the London-based insurance company Lloyd’s with its syndicate of underwriters which act under its umbrella. And this premium service comes in at no additional cost.
Nexo and BitGo have a long-standing partnership. As a result, BitGo provided immediate support for the NEXO Tokens and has ensured safe custody to clients since day 1 of Nexo’s operations.
Market leader and multi-signature technology pioneer BitGo henceforth holds clients’ crypto assets for Nexo, the…medium.com
With regards to the new insurance product, Mike Belshe, CEO at BitGo, commented:
“This is the most complete insurance offering in the industry. (…) Transparency and accuracy is essential for building trust in the market.”
To facilitate this incredibly powerful protection, Lloyd’s of London’s, a company that has stood the test of time, being in operation since 1686, is leading a syndicate of 10 underwriters to yet again excel in the innovative domain of digital assets by bringing in stability that attracts large scale institutional investments. As CEO Inga Beale puts it:
“Lloyd’s capital position is at its strongest ever with net resources totalling £29.0bn (…) and Lloyd’s strong and secure financial position is underscored by our excellent ratings which were recently reaffirmed at A (Excellent) from A.M. Best, A+ (Strong) from Standard & Poor’s and AA- (Very Strong) from Fitch.“
With centuries-long expertise, solid financials and unrivaled expertise by the parties involved in both the insurance process and crypto assets in general, clients are guaranteed peace of mind.
What is Covered by the Insurance Policy?
Custodial crypto assets are insured against commercial crime. In the unlikely event that Nexo’s custodian should suffer a security breach, insurance procedures are triggered so as to compensate any losses resulting from physical and/or cybersecurity breach, and/or employee theft.
Additional Insurance Solutions
In an effort to diversify risks, Nexo is constantly on the lookout for new insurance mechanisms, products and product providers, in order to widen the provision, the range and circumstances under which we can protect our clients. An immediate example would be Nexo’s premium service for Nexo Wallets of $2M+ which offers dedicated cold wallets with customizable insurance, designated account managers and OTC liquidity solutions.
Additionally, Nexo is a founding member of the Collateral Protection Insurance (CPI) consortium which is unfolding many cutting-edge possibilities in the decentralization effort for the insurance industry as a whole. This new approach has some exciting prospects to offer going forward.
Top-Notch Security for All Nexo Services
Whether clients utilize Nexo’s efficient lending capabilities in 200+ jurisdictions and in more than 45+ fiat currencies or use Nexo’s Earn Product to earn up to 6.5% per year on their idle crypto assets — every aspect of Nexo’s business adheres to the highest security standards. In its 10+ years of secure online credit facilitation, the Nexo Team is proud to say that there have never been any system intrusions or security breaches.
To underpin the robustness of the enterprise, Nexo is making use of BitGo’s Enterprise Solution which incorporates the Cryptocurrency Security Standard Level 3 and is SOC 2 compliant. The CCSS Level 3 requires multiple actors for the all-critical actions, as advanced authentication mechanisms are employed to ensure the authenticity of data, while assets are distributed geographically and organizationally.
Furthermore, all Nexo systems are audited by top IT specialists and ensure 24/7/365 fraud monitoring mechanism, around the clock customer support, military-grade encryption that guarantees both the security of clients’ funds and their privacy.
Regardless of whether you need instant access to cash, while retaining the upside potential of your crypto or are looking to earn high-yield interest on your crypto assets, Nexo has you covered — to the fullest meaning of the expression.
Do check out our earlier blog posts, share them with your friends and let them too be part of the Nexo success story!