𝐁𝐨𝐫𝐧 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐜𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐫𝐞𝐢𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐞𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐰𝐨𝐫𝐥𝐝
Relm, an insurance company for the cryptocurrency industry and the world's first and only insurer to hold the Bermuda IIGB license, has announced the launch of Relm II, the world's first fully regulated guaranteed reinsurance business that can accept both fiat currencies and cryptocurrencies as collateral.
Relm II enables the creation of regulated reinsurance capacity for companies operating in the cryptocurrency space, the insurer said. These companies need protection limits significantly higher than what the current insurance and reinsurance market can offer. 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 critical distinction" in the secured reinsurance space, according to the company. It will allow Relm to tap into "substantial pools" of aligned investor capital to support traditional lines of coverage such as directors and officers or professional liability, as well as the insurer's recent product launches for smart contract bankruptcy insurance, hack and BTC-dominated crypto theft insurance.
In a decentralized finance space, there is a particular need for regulated coverage, Relm said. According to theblockcrypto.com, there is currently more than $225 billion in total value locked in smart contracts across nearly 2,000 projects. Since the beginning of 2020, more than $1.8 billion of capital committed to decentralized finance has been lost through exploits. The addition of Relm II capability will allow Relm to offer higher limits of coverage for smart contract failure, allowing institutional capital to move into the decentralized finance space with more adequate levels of insurance protection.
As the world's leading crypto insurer in our third year of operations, our mission is to energize cryptocurrency businesses, allowing them to scale and grow. “Relm II is an extension of that mission and a further demonstration of our commitment to supporting emerging sectors and our ability to think outside the box and use regulated (re)insurance infrastructure to solve capacity issues in the insurance industry. cryptocurrencies”, they add.