Cam Thompson is a Colby Desk journalist.
Crypto custodian Aegis Trust is offering an insurance policy for non-fungible tokens (NFT), the company said Tuesday.
The policy, supplied by the Lloyd's of London insurance market, will enable aegis to insure up to $25 million in tokenized assets held by institutional investors, hedge funds and stock exchanges.
While the NFT market continues to benefit from a protracted crypto winter, insurance of digital assets remains a topic of discussion. In March, insurance company IMA set up its office in Decentraland to offer protection for tokenized assets. And in the wake of crypto exchange FTX’s collapse, there appears to be heightened interest in keeping digital assets safe.
Serra wei, chief executive officer of aegis trust, advised Coindesk that the lack of regulation and protection has resulted in customers losing their assets and has prompted the company to deploy a custodial product targeting NFT. Aegis currently offers a fully customizable white-label solution to build a complete custodial NFT Marketplace
“We are focusing on the security of the infrastructure. And this is truly fundamental to institutions, which are still the majority of the value that entered the crypto market," wei said coindesk. "It's essential to be able to add this layer to what we already provide to customers."
In August, the company teamed up with COINBASE Cloud to provide custody and staking for Evmos (the EVM hub launched on Cosmos) and Avalanche.
In recent years, the company has continued to expand its asset preservation and digitization offerings, taking into account regulatory requirements. In December 2020, Aegis Trust obtained regulatory approval from the South Dakota Division of Banking to establish its trust. Institutional custody firms BITGO and Anchorage earned the status to operate in the same state.
Fix (22:02 UTC 28/11/22): Fix to Aegis service description.