Cryptocurrency security company, Curv, obtained up to $50 million of insurance coverage. The reinsurance from Munich Re is meant for institutional customers.
The coverage was announced this weekend. It is an add-on to the Tel Aviv-based Curv’s Institutional Digital Asset Wallet Service.
From the partnership, Curv is expected to have the financial capability to pay for losses of crypto assets, the partners said in a press release.
Some info on the partnership
The startup company affirmed that digital assets cannot be stolen from Curv’s Wallet Service. This is either with a single cyber breach or even through insider collusion. But, the insurance policy is available as a higher line of defense.
Munich RE is insuring Curv against the risks of an external cyber breach or malicious behavior by Curv or its employees. Users of the wallet can opt-in for the insurance by paying an additional cost based on the amount of assets they store with Curv.
During the process of the partnership, Munich RE audited Curv’s technology. It found out that their approach enables users to underwrite policy. Munich RE’s head of cyber innovation and services, Ali Kumcu, said that the policy covers customer-controlled wallets in internet-connected settings.
Insight to Curv’s process
The approach dispenses the usual mix of hot wallets, which is usually connected to the internet and cold storage, in which cryptographic private keys are kept on a piece of paper or an offline device. It is then locked away in a safe or even an electromagnetic field-proof cage.
The product instead uses multi-party computations to the private key signing mechanism. It eliminates the private keys altogether, explained Curv CEO Itay Malinger and a distributed security model is given to the signature mechanism.