Crypto.com Locks In $120M Insurance to Protect Digital Assets in the U.S

Crypto.com Secures $120 Million in Insurance for U.S. Custody Platform as Institutional Confidence Grows

Crypto.com, a leading global cryptocurrency exchange, has announced a significant milestone in strengthening its digital asset custody infrastructure. The company has secured a $120 million insurance policy to cover assets held within its U.S.-based custody platform, Crypto.com Custody Trust. The move, which comes amid intensifying regulatory clarity and growing institutional demand, positions Crypto.com as one of the few exchanges offering comprehensive insurance coverage in an industry still grappling with risk management.

The insurance arrangement was facilitated by London-based insurance firm Aon, working in partnership with underwriters through Lloyd’s of London, one of the world’s most established insurance marketplaces. This new coverage underscores Crypto.com’s focus on bolstering security and enhancing trust as it expands its footprint across North America.

“We built Crypto.com on a foundation of safety and security,” said Joe Anzures, President of Crypto.com Custody Trust Company. “Our insurance policy, arranged by Aon for assets within Crypto.com Custody Trust Company, is the latest example of our commitment to safeguarding our customers and providing a best-in-class offering that institutional clients can be reassured by.”

The Details Behind the Coverage

The $120 million policy is designed to protect customer assets stored within the custody arm of Crypto.com from risks such as crime, physical loss, theft, or damage. Of the total amount, $100 million is dedicated specifically to protecting assets held in cold storage — the offline method of securing digital assets that is widely regarded as the safest form of custody. The remaining $20 million is allocated for coverage against crime-related incidents, including third-party theft and cybercrime.

According to the company, this insurance plan will extend into the first quarter of 2025 and serves as an important pillar in Crypto.com’s broader strategy to support institutional adoption and regulatory compliance. The exchange emphasized that this insurance is not merely symbolic but reflects its commitment to risk mitigation, corporate governance, and operational transparency.

Industry Context: A Rare Offering in a Risk-Prone Sector

Comprehensive insurance remains a rarity in the cryptocurrency exchange landscape. A recent study by CoinLaw reveals that as of mid-2025, only 22% of cryptocurrency exchanges globally offer insurance for digital assets held in custody. Even fewer provide clear coverage for cold storage, the most secure form of asset storage.

In addition, the study found that 74% of insured exchanges focus their coverage on protection from cyberattacks and crime. Between 2022 and 2024 alone, insurance payouts tied to exchange-related hacks totaled approximately $1.8 billion, underscoring the significant risks exchanges face and the importance of strong custodial and insurance frameworks.

“The reality is that most exchanges still operate with limited insurance protections,” noted blockchain security analyst Matthew Lin. “Crypto.com’s move is not just strategic—it’s necessary for long-term trust and institutional capital flow.”

Regulatory Tailwinds and Strategic Growth

The announcement comes as Crypto.com expands its operational presence in the United States, marked by the recent opening of a new office in Washington, D.C. This strategic move aligns with a broader trend of improving regulatory clarity in the U.S. following a series of legal closures and investigation resolutions involving major crypto firms.

Notably, Crypto.com was among the companies for which the U.S. Securities and Exchange Commission (SEC) concluded its investigation earlier this year, signaling a more cooperative regulatory environment for firms committed to compliance and transparency.

Beyond regulatory progress, Crypto.com is also deepening its partnerships and product offerings. The company recently partnered with Canary Capital Group to launch the Canary CRO Trust — a regulated investment vehicle designed to provide institutional investors with exposure to the Cronos (CRO) token, Crypto.com’s native cryptocurrency.

The Bigger Picture: Building Institutional Infrastructure

Crypto.com’s move to secure $120 million in insurance coverage is seen as a major step in building the infrastructure necessary to support growing institutional interest in digital assets. From family offices to hedge funds, institutional investors demand not only regulatory clarity but also robust custodial solutions that include insurance protections.

As digital assets become increasingly integrated into traditional financial portfolios, the ability to provide end-to-end protection — from cyber-resilience to legal compliance and insurance — is becoming essential. Crypto.com’s Custody Trust solution is aiming to deliver on all fronts.

“Institutional adoption requires more than just access to crypto,” said Katherine Li, a digital asset strategist at Summit Research Group. “It requires the entire ecosystem of protections and services that traditional finance has developed over decades. This insurance policy is a signal that Crypto.com understands that.”

Looking Ahead

With the new insurance coverage in place, Crypto.com appears well-positioned to attract a broader range of clients, particularly in North America, where regulators and institutional investors alike have been cautious but increasingly open to crypto exposure.

As other exchanges grapple with tightening scrutiny and ongoing security concerns, Crypto.com’s latest development offers a model of how to navigate the complex terrain of digital asset custody. It reflects a growing trend within the industry — one that prioritizes infrastructure, security, and institutional-grade offerings.

In an era marked by rising digital asset theft, hacks, and regulatory overhauls, Crypto.com’s $120 million insurance initiative represents not just a corporate milestone, but a shift in how crypto firms approach trust-building. It may well become the benchmark against which other exchanges are measured.

Source: Crypto.News

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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