BDIC debuts cryptocurrency insurance unit with global expansion plans

New Bermuda-based entity aims to provide structured insurance solutions

BDIC debuts cryptocurrency insurance unit with global expansion plans

Technology

By Kenneth Araullo

Blockchain Deposit Insurance Consultant Group LLC has announced the launch of an international cryptocurrency insurance unit under the name Blockchain Deposit Insurance Corp. (BDIC).

The newly formed entity will provide digital wallet insurance for select cryptocurrencies and establish its headquarters in Bermuda, with affiliate offices in Switzerland, Hong Kong/Greater China, Canada, and South America. 

BDIC plans to apply for Lloyd’s coverholder status in the coming months, which would enable it to develop insurance policies in collaboration with Lloyd’s syndicate members.

The company said that achieving this status would support the creation of a structured insurance framework for the cryptocurrency sector. 

Jeffrey Glusman (pictured above), BDIC’s chief executive officer, said the company aims to strengthen financial security as digital currency adoption increases.

“Achieving Lloyd’s coverholder status will be a pivotal step in establishing a structured, reliable, and trusted insurance framework for the crypto market. BDIC is committed to ensuring financial security as global adoption of digital currencies accelerates. We will apply for Lloyd’s Coverholder status and announce our syndicate partner in the near future,” Glusman said.

In addition to seeking regulatory and industry approvals, BDIC will introduce its executive team and key hires, as well as third-party advisers focused on the technical development of its decentralised application, go-to-market strategy, and ecosystem growth. 

"This project will be part of our legacy," Glusman said. "By securing digital wallets, we provide the missing mental component for crypto adoption: safety. Trust and confidence in security are essential for cryptocurrency’s integration into daily life, and our team is ready to play a crucial role."

The announcement follows Lloyd’s approval of managing general agent and Bitcoin custody specialist AnchorWatch as a coverholder in 2024, according to an AM Best report.

AnchorWatch began offering policies in December, allowing customers to insure up to $100 million in Bitcoin without surrendering their private access keys, according to the company’s chief operating officer and co-founder Becca Rubenfeld.

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