A new insurance company has launched in Bermuda providing digital wallet insurance for certain cryptocurrencies.

Blockchain Deposit Insurance Corporation is the international entity of Palm Beach, Florida-based Blockchain Deposit Insurance Consultant Group LLC.

The company said: “This venture aims to revolutionise cryptocurrency insurance by providing digital wallet insurance for preferred cryptocurrencies, ensuring security and trust in everyday financial transactions.”

BDIC said it is establishing its headquarters on the island, with affiliate offices in Switzerland, Hong Kong/Greater China, Canada and South America.

In the coming months, BDIC said, it will pursue Lloyd’s of London cover holder status, a designation that will grant it specialised authority to assess and underwrite complex cryptocurrency risks.

The company said: “This will allow BDIC to develop robust insurance policies in collaboration with Lloyd’s syndicate members already servicing the industry.”

BDIC said its launch represents a significant step in bridging traditional insurance with the crypto economy.

Chief executive Jeffrey Glusman said: “The traditional insurance industry is acknowledging the immense business opportunities in digital assets. Achieving Lloyd’s cover holder status will be a pivotal step in establishing a structured, reliable and trusted insurance framework for the crypto market.

“BDIC is committed to ensuring financial security as global adoption of digital currencies accelerates. We will apply for Lloyd’s cover holder status and announce our syndicate partner in the near future.”

BDIC said it will also announce its executive team and key hires, as well as third-party advisers focused on the technical development of its decentralised application, go-to-market strategy and building a community-driven ecosystem.

“This project will be part of our legacy,” Mr Glusman said of the soon-to-be-announced leadership team.

“By securing digital wallets, we provide the missing mental component for crypto adoption: safety. Trust and confidence in security are essential for cryptocurrency’s integration into daily life, and our team is ready to play a crucial role.”