CustodyReinsurance.com is forwarded to   https://sites.google.com/view/custodyre/

Digital Asset Custody stores client assets with both private and public keys that allows transfer without their permission.  The client trusts the Custodian completely.   Accepting Custody creates very high risk.  Crypto under custody could exceed US$ Billions as Elon Musk demonstrated in 2020 Q4.  Once a Custodian takes delivery of a clients Crypto, the assets should be placed in cold storage ( offline from the internet ) and insurance purchased against loss and CustodyReinsurance purchased to share the risk.   Reinsurance is how your insurance company protects itself. 

Insurance companies hold contracts with reinsurers that detail how much risk reinsurers will be sharing and at what cost.

Digital Assets such as Cryptocurrencies are stored in a CryptoBank or similar Financial Institution to safeguard and preserve the integrity of an asset transferred into and out from the custodian.  Each transfer movement incurs risk.  Storage also attracts attention and risk from those who would like to  hack or remove the digital assets.

The digital asset custodian has insurance to cover the risk from loss and the CustodyReinsurance provides additional coverage for the asset, the custodian, the custodian insurance carrier and spreads the risk among many insurance providers.

Since 1686 ( 335 Years ago ) Lloyd's of London has provided unusual and specific insurance for assets that fell out of the spectrum of typical assets.  Lloyd's developed a reputation of being the Insurance company of last resort, if other insurance providers declined to provide coverage.  Lloyd's also provided re-insurance services that went over and above typical coverage and spread the risk among blue-chip insurance companies in the syndicate.

Custody Reinsurance is the Lloyds of the custody industry.  Initially, digital asset owners  maintained the liability of their assets with crypto wallets, paper wallets, hardware wallets, crypto apps stored on mobile phones,  and online exchanges, but recent studies reveal that of the 18.5 Million Bitcoins created so far, around 20% ( or 3,700,000 BTC— currently worth around $140 Billion — appear to be lost or otherwise stranded / lost wallets. 

These losses were incurred by the owner.  In 2021, Crypto Banks began popping up and the custodians who operate these facilities are new to the industry and may not have a cold-storage vault that is offline and out of the reach of hackers.  Reinsurance will be necessary and reputations will be lost of those who do not provide it.

Insurance provides an umberella to protect the digital asset.  ReInsurance provides a bigger umbrella over all the risks.  One of the largest and best known reinsurance companies is A Berkshire Hathaway Company called GenRe  GemRe provides the overall umbrella that covers specific insurance companies.  As more crypto is created and each coin increases in value insurance and reinsurance  will be essential.

Cryptocurrency is new.  Each month brings new players creating new tokens, coins, exchanges, apps and greater risks as each company competes for a larger share.

Custodian Industry is Growing

There are over 1200 banks able to be legal Custodians and many of the crypto firms are amalgamating with known Custody guardians to enlarge their crypto client services.  

Institutional investor, like hedge funds, insurance & public companies are making sizable investments in digital assets that require a digital custodian and insurance.

"Bitcoin is the strongest asset the human race has ever invented" - Michael Saylor ( https://bit.ly/3jMAhvo ) 

There is no need to "Register" as I don't collect email address's .   But if you find additional knowledge, send me a link .

- Doug   Vancouver BC Canada

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