Crypto insurer launches world’s first reinsurance business
Relm, a company that provides insurance to the crypto industry and the world’s first and only commercial insurer to hold Bermuda’s IIGB license, announced the launch of Relm II, the world’s first fully regulated collateral reinsurance company that can accept both fiat currencies and cryptocurrencies as collateral. .
Relm II enables the creation of regulated reinsurance capacity for companies operating in the crypto space, the insurer said. These companies need significantly higher protection limits than the current insurance and reinsurance market can provide. The capability enabled by Relm II will allow Relm to expand its support for crypto businesses to achieve significant scale and growth.
Relm II’s ability to accept both fiat and crypto as collateral is “a key distinction” in the collateralized reinsurance space, Relm said. This will allow Relm to tap into “substantial pools” of investor capital aligned to support traditional lines of coverage such as directors and officers or professional liability, as well as the insurer’s recent product launches for the insurance against smart contract failures, insurance cuts, and BTC-dominated crypto. theft insurance.
There is a particular need for regulated coverage in the decentralized finance space, Relm said. According to theblockcrypto.com, there is currently over $225 billion in total value locked in smart contracts across nearly 2,000 projects. Since the start of 2020, more than $1.8 billion of capital committed to decentralized finance has been lost via exploits. The addition of Relm II capability will allow Relm to offer higher coverage limits in the event of smart contract failure, allowing institutional capital to move into the decentralized finance space with levels of protection of more appropriate insurance.
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“I am thrilled to announce the launch of Relm II at the iconic Bitcoin 2022 conference in Miami, where Relm is a sponsor for the second year in a row,” said Joe Ziolkowski, co-founder and CEO of Relm and Relm II. “As the world’s leading crypto insurer in our third year of business, our mission is to energize crypto businesses, enabling them to grow and grow.
“Relm II is an extension of this mission and a further demonstration of our commitment to supporting emerging sectors and our ability to think creatively and use regulated (re)insurance infrastructure to address capacity issues in the crypto industry. We are excited to collaborate with aligned financial partners to build meaningful insurance capacity as the crypto economy becomes mainstream.