Coinbase Reveals $255M Hot Wallet Tailor-made Insurance Policy

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The Coinbase hot wallets holding digital assets have been protected in a tailored insurance policy, the company announced through its blog. The broker’s hot wallets have received coverage up to $255 million, a significant fund in case of hacks. “The data is clear that, today, the most likely consumer loss scenario for any cryptocurrency company is hot wallet loss due to hacking,” said Philip Martin, Information Security Officer at Coinbase. For this reason, Coinbase has held a form of insurance for its hot wallet since 2013. Currently, the coverage has reached $255 million, Martin explained. He compared the Coinbase insurance to more traditional policies in case of bank insolvency. Coinbase also holds a policy to protect its fiat assets, and planned to offer a similar form of security for digital assets. The insurance of crypto assets was achieved under the guidance of insurance partner Aon, which helped build a portfolio…

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