KuCoin crypto assets will now be backed by the largest privately-held insurance brokerage firm, Lockton. This was achieved in partnership between the cryptocurrency exchange and the crypto asset custodian, Onchain Custodian.
Lockton backs KuCoin crypto assets.
According to the report on Monday, KuCoin reached a collaboration with the crypto custodian to safe keeps the assets of its users. The custodial assets will reportedly be supported by Lockton.
The development today is quite a milestone, as the need to adequately secure crypto assets has risen exponentially. The operational issues encountered by crypto exchanges, including hacks, have been a thorn in the neck of the emerging industry.
Wake for crypto assets security
As of last year, the cryptocurrency industry recorded at 28 crypto exchange hacks, many of which resulted in the loss of crypto assets. This particular challenge tarnishes the confidence of investors on centralized exchanges, which results in setbacks.
Following the partnership today, both entities are going to observe custody as well as insurance cooperation as fund security. This is aimed at securing KuCoin crypto assets, and the general market system like technologies, rules, etc., to enable a secured environment for crypto investors to trade.
Since the inception of the exchange in 2017, it always worked towards the security of its customers crypto assets, said Johnny Lyu, the Chief Executive Officer at KuCoin Global. On this same purpose, the exchange collaborated with other top industry-standard companies like Chainalysis.
A step farther to asset security
The collaboration with Onchain Custodian can be considered as a step farther by the exchange, as KuCoin crypto assets are now insured with Lockton. The company has been providing insurance for the digital assets held by the custodian since 2019.
According to Lyu, the regular audit system of the crypto custodian, as well as the insurance firm will offer a more secure environment for the exchange users. Meanwhile, KuCoin plans to adopt asset separation after it’s partnership with the custodian company, to ensure more improvement on the security of customers’ assets.