Fireblocks Enlists Crypto Insurance Firm Coincover for Third-Party Key Recovery Service
Cryptocurrency custody specialist Fireblocks has deepened its relationship with U.K.-based digital assets protection and insurance company Coincover, doubling down on backup and disaster recovery for cryptographic keys.
Fireblocks, which employs a clever key sharding technology called multi-party computation, encourages customers to independently back up their keys and combine that with third party disaster recovery services from Coincover, one of the first crypto firms to work with Lloyd's of London.
“We’ve quite well known for crypto insurance, but this is to do with our disaster recovery piece,” said Oliver Cummings, Coincover’s director of strategy and partnerships. “It’s where we become a third party within Fireblocks and its client relationships. It’s almost like a break-glass solution so if something happens to the client, or to Fireblocks, we could recover that wallet for the customer.”
Bringing belt and braces assurances to any area of crypto risk at the moment is going to play well with institutional investors, many of whom have scattered amid the fallout from failed crypto exchange FTX and others.
Cummings said customers can rely on Coincover as a third party coming in with very fixed processes in place and a standard service level agreement.
“A lot of the ambiguity comes in when firms do their own backup in their own way. We have a tried and tested method when it comes to disaster recovery," Cummings noted.