BitGo Boosts Insurance Capacity to $600M, Launches “Dedicated Customer Express Specie” Program

BitGo, a leading digital asset custody provider, has announced a major expansion of its insurance offering—raising its total coverage capacity to $600 million. The move is set to meet soaring institutional client demand for secure, insured crypto storage, while also reflecting BitGo’s standing as a key player in the evolving digital asset market.

In 2019, the Silicon Valley-based firm pioneered a crypto-specific insurance program through Lloyd’s of London, one of the world’s foremost insurance and reinsurance marketplaces. This program allowed BitGo’s clients to insure digital assets held in the company’s business wallet service or custodial offerings for sums of up to $100 million. Now, BitGo has unveiled a new initiative, dubbed “Dedicated Customer Express Specie,” capable of covering assets exceeding $700 million in value.

1. Expansion of BitGo’s Insurance Program

1.1 Raising Capacity to $600 Million

BitGo’s decision to increase its insurance coverage to $600 million responds to an uptick in demand from large-scale crypto investors, family offices, and financial institutions. As digital assets go mainstream and institutional players enter the market, the appetite for robust risk management strategies and insured custodial solutions has grown exponentially.

• Stronger Security Credentials: By offering a higher ceiling on coverage, BitGo can assure clients—especially those with sizable holdings—that their assets remain protected under a best-in-class insurance framework.
• Meeting Institutional Standards: Traditional financial institutions, in particular, often require third-party insurance as a precondition for storing or trading digital assets. This expansion addresses those requirements.

1.2 Introducing “Dedicated Customer Express Specie”

The newly launched “Dedicated Customer Express Specie” program offers an excess insurance layer on top of BitGo’s existing coverage. This means clients with extremely high-value portfolios—those exceeding $700 million—can now benefit from an expanded policy, further minimizing counterparty risk.

“We have the most prominent technology as well as scale. Hence, we can offer a low-cost dedicated insurance program over the top of BitGo’s secured cold storage system,”
— Mike Belshe, CEO of BitGo

Belshe added that this milestone underscores the popularity of insured cold storage for institutional investors who prioritize security and regulated solutions.

2. Collaboration with Leading Insurance Brokers

BitGo partnered with Woodruff Sawyer and Paragon International Insurance Brokers of London to bring the “Dedicated Customer Express Specie” program to life. These firms play a pivotal role in structuring coverage for high-value assets, ensuring that the policies meet the complex needs of modern crypto investors.

• Woodruff Sawyer: Renowned for insurance consultancy, risk management, and corporate coverage solutions.
• Paragon International Insurance Brokers: Specialists in high-stakes coverage, with expertise across finance, collectibles, and digital assets.

In line with previous reports, Crypto.com has become one of the first BitGo clients to take advantage of this new, more expansive coverage. As one of the world’s most prominent crypto platforms, Crypto.com’s move highlights how robust insurance is evolving into a baseline expectation for major industry players.

3. Recap: BitGo’s Original Lloyd’s of London Program

Launched in 2019, BitGo’s initial insurance solution—the first crypto-insurance program with Lloyd’s of London—offered coverage of up to $100 million per claim. This initiative helped BitGo clients secure their digital properties held in cold storage or the company’s advanced wallet services. By bridging the gap between conventional insurance frameworks and new-age crypto custody, BitGo set a precedent for the entire market.

Key Features of the 2019 Program

• Coverage for Custodial and Business Wallets: Benefiting clients who manage sizable portfolios or handle institutional assets.
• Enhanced Market Confidence: Lending legitimacy to crypto storage solutions, reassuring investors who were concerned about hacking incidents or key mismanagement.

4. Why Institutional Demand Is Surging

4.1 Growing Crypto Adoption

As Bitcoin and other cryptocurrencies attract mainstream interest, more hedge funds, corporations, and asset managers want to diversify into digital assets. This momentum drives requirements for:

1. Regulated Custodians: Entities that meet rigorous security, compliance, and insurance needs.
2. Robust Risk Management: Institutions rely on insurance coverage to protect themselves against unforeseen events and possible losses.

4.2 Risk Mitigation

Insurance for crypto holdings reduces the fear of catastrophic loss from hacking or key compromise. For any large holder, combining cold storage with a verifiable insurance policy is near-mandatory. The expanded coverage reaffirms that crypto has matured into an asset class worth insuring, comparable to precious metals or high-value collectibles.

5. BitGo’s Position in the Market

Beyond its pioneering insurance solutions, BitGo enjoys substantial backing from prominent financial institutions and crypto-focused funds. Goldman Sachs is among its supporters, alongside influential names like Mike Novogratz (founder of Galaxy Digital).

5.1 Assets Under Custody Top $16 Billion

BitGo’s custody solutions have repeatedly proven appealing to professional-grade clients. The company now reports over $16 billion in digital assets under custody (AUC), illustrating that it has become a trusted repository for high-value cryptocurrency portfolios.

5.2 Future Outlook

With institutional involvement on the rise, BitGo’s next steps may include deeper integration with banks, expansion of staking services, or forging partnerships that make it easier for institutional finance managers to deploy capital into digital assets.

6. Final Thoughts

BitGo’s move to boost its insurance coverage to $600 million—and to introduce a “Dedicated Customer Express Specie” program for extremely high-value portfolios—demonstrates a new level of maturity in the crypto custody space. By collaborating with leading brokers and leveraging partnerships with major financial backers, BitGo fortifies itself as a cornerstone infrastructure provider for the burgeoning digital asset ecosystem.

Key takeaways:

1. Institutional Investors Rely on Insurance: Insurance coverage at this scale is paramount, especially as mainstream investors hold increasingly large crypto allocations.
2. Lloyd’s of London Partnership: Establishing synergy between traditional insurers and crypto custodians fosters trust across both finance worlds.
3. Growing AUC: With more than $16 billion under custody and significant expansion potential, BitGo’s product suite likely heralds further custody innovations.

As the crypto marketplace matures and institutional demand stays robust, cutting-edge custodians like BitGo must continually elevate security—and insurance coverage—to reassure clients. This latest milestone underscores how far the industry has come in bridging legacy financial tools with the radical potential of decentralized digital assets.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.