Numerous people are enticed by crypto assets and related products, but they remain adamant to fully enter the phenomenon because of associated security issues and the hacking scandals that have tormented the industry in recent months.
After all, hackers are continually lurking around the web to find security breaches that they can exploit, victimizing hundreds, even thousands of users of crypto wallets, exchanges, and other services and products related to the industry.
Curv, a very well known crypto security firm, has secured some piece of mind by obtaining a maximum of $50 million of insurance coverage to its institutional clients from one of its associates, reinsurance firm Munich Re.
Financial Capability to Pay for Losses
The news were announced a couple of days ago, as an add-on to Curv’s Institutional Digital Asset Wallet Service. “Curv will have the financial capability to pay for losses of crypto assets,” according to the partners, who released a press note.
In an effort to provide another layer of security to offer customers, Curv adds that “digital assets cannot be stolen from Curv’s Wallet Service with a single cyber breach or even through insider collusion,” which is always a possibility.
According to the terms of the policy as reported, Munich RE will be providing insurance for Curv against risks of “an external cyber breach or malicious behavior by Curv or one of its employees,” the company said.
An Additional Fee
Wallet users can opt to include the newest coverage agreement if they choose to pay an additional fee, which is based on the number of assets they store with Curv. The insurance company, of course, performed an audit of Curv’s technology.
Among the findings of the audit process, Munich Re found “their approach enables us to underwrite a policy that covers customer-controlled wallets in Internet-connected settings,” according to Ali Kumcu, the company’s head of cyber innovation and services.
The discussed approach dispenses with the frequently used mix of hot wallets (Internet-connected) and cold storage. The report states that “the product applies multi-party-computations to the private key signing mechanism, eliminating the private keys altogether,” according to Itay Malinger, Curv’s CEO. “This brings a distributed security model to the signature mechanism.”
Preventing Attackers from Signing Transactions
Curv recently raised more than $6.5 million (in February, most precisely) from companies such as Team8 and Digital Currency Group.
Curv’s mission is “to enable institutions to store and use digital assets securely and seamlessly. We view this insurance milestone as a major validation of our wallet service and specifically our cloud based, cryptographically-enforced and distributed signing mechanism.”
Thanks to its cutting-edge security system, “Curv can enforce a corporate [access] policy from the cloud and completely out of band, so that an attacker or an insider within Curv or within its customers are unable to sign transactions because they simply don’t have enough cryptographic material. This is also what makes the service insurable,” said Malinger.
By Andres Chavez