Standard Chartered and SBI invest in crypto theft insurer Soter
Why it matters
Soter's boss argues banks can't grow in crypto without cover against theft. With big lenders now funding that cover, insurance for stolen coins is becoming part of any custody conversation.
Post to XThe short version
Standard Chartered's investment arm and Japan's SBI Group have invested in Soter, a company that insures crypto against theft and hacks, CoinDesk reported on 5 November. CoinDesk says the deal brings Soter's latest funding round to around $66 million, counting the bitcoin and ether investors put in at current prices.
SC Ventures, Standard Chartered's investment arm, and Japan's SBI Group have joined a Galaxy-led funding round for Soter Insure, according to CoinDesk. Counting the bitcoin and ether investors put in, the round brings Soter's Series B to around $66m at current prices, CoinDesk said. That includes more than 500 BTC and 2,000 ETH on top of the cash.
Earlier backers include Coinbase Ventures, Franklin Templeton and Brevan Howard Digital, CoinDesk reported.
So what does Soter do? It sells cover against crypto losses from hacks, theft and software failures. Policies are paid for in bitcoin or ether, and claims are paid in the same coin. Founder Henson Orser told CoinDesk it can insure losses of up to $5m, 200 BTC or 2,000 ETH from its own assets, and shares larger policies with other insurers.
Put it in context. The deal follows Binance's $6.3bn hack and a reported $133m theft involving French bank Crédit Mutuel Arkéa. Orser said recent incidents have made crime cover slightly harder to get.
Soter holds a Bermuda insurance licence and is based in Abu Dhabi. It plans to use the money to add capacity and grow in Asia, Europe and the US.
Where this comes from
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