Crypto and DeFi Wallet Firm Fordefi Gets Cover from Insurance Giant Munich Re [Video]

Fordefi, a cryptocurrency wallet built for decentralized finance (DeFi), is working with German insurance giant Munich Re, the companies said in a blog post on Thursday.

Facilitated by Kansas City-headquartered insurance broker Lockton, Fordefi’s wallet policy covers cyberattacks and things like internal fraud or collusion, as opposed to protection at the smart contract level.

The dollar amount of the coverage was not disclosed, but as well as the general level of cover for Fordefi’s wallet – which uses clever key sharing capabilities known as multi-party computation (MPC) – customers can top up with more cover from Munich Re on an individual basis.

DeFi’s fast-moving collection of decentralized, on-chain trading platforms has been described as a “playground for hackers,” making it a tough ask for even the most digital asset-focused insurer.

“The policy covers external cyber threats and attacks that would compromise the platform, as well as internal fraud or employee collusion,” Schwartz said …