Ziglu, the UK-based cryptocurrency banking platform, has launched an insurance program for digital assets held with the service, as each customer’s cryptocurrency holdings are insured against cybercrime to a value of £50,000 ($63,000).
On July 15, it has been reported that customer assets are held in segregated accounts, with the vast majority stored in offline cold wallets.
However, these additional measures decrease the risk of theft through hacking or other means.
As it has been reported, Ziglu is the brainchild of Mark Hipperson, the former head of Barclay’s technology, and Co-founder of UK challenger bank, Starling.
The service launched last month by offering an account that allows users to hold funds in multiple fiat and crypto-currencies, and freely exchange between them. Its fully transparent model guarantees no hidden fees or transaction charges, and competitive exchange rates.
“One of the biggest concerns for users is the safekeeping of their funds and cryptocurrencies. Ziglu’s insurance programme brings peace of mind to existing customers or those dipping their toes into cryptocurrency for the first time.”
Likewise, insuring against “cybercrime” clearly covers a diverse range of potential attack vectors.
“We expect the target to be the hot wallets but the type of attack changes rapidly which is why our insurance covers a broad spectrum of attacks on the digital asset wallets.”
It has been analyzed that the £50,000 limit currently applies per customer, though Hipperson said that Ziglu may look to expand this to be per cryptocurrency in the future.
As per the report, planned future additions to the service include direct global payments to friends, family, and businesses through banking networks, as there is also talk of a Mastercard debit card.
The debit card will allow users to spend any currency they hold, including crypto, anywhere in the world.
Thus, the card will apply direct currency conversion at the point of sale by allowing users to easily hold and spend cryptocurrency alongside their fiat funds.