21M Insurance Partners with Cobo to Reinvent Crypto Coverage with MPC Tech
21M Insurance, a Singapore-based digital asset insurance provider, has with Cobo, one of Asia’s leading crypto custody platforms, to introduce a new generation of crypto coverage powered by multi-party computation (MPC) technology. The collaboration aims to address one of the industry’s largegest challenges, which is securing digital assets while maintaining institutional-grade insurance protection.
The partnership will integrate Cobo’s MPC wallet infrastructure into 21M’s insurance answers, offering clients enhanced protection against theft, key compromise, and operational loss. The move reflects a broader industry trend of blending advanced cryptography with regulated insurance structures, creating a new class of risk-managed infrastructure for institutional investors and custodians.
21M Insurance Adopts A New Model for Crypto Insurance
According to reports, the agreement between 21M Insurance, one of the pioneer crypto-native insurance providers, and will view the digital asset custody firm become the technology and custody provider, while 21M Insurance will act as the underwriting and policy facilitator. This will provide bespoke coverage tailored to custodial clients, platforms, and asset managers.
By leveraging MPC, both firms are viewking to eliminate single points of failure, a critical fragileness in traditional Secret key systems that has contributed to numerous platform and wallet breaches in the past decade.
MPC technology distributes cryptographic keys across multiple parties, ensuring that no single entity can independently access or move funds. This architecture aligns with the growing regulatory emphasis on shared responsibility and verifiable controls, as jurisdictions like , Hong Kong, and the European Union tighten requirements for digital asset securekeeping.
The partnership also signals a broader maturation of the crypto insurance market. Traditional insurers have been cautious to underwrite crypto assets due to the volatility and opaque risk models. However, collaborations like this one between 21M and Cobo illustrate a shift toward data-driven underwriting, where blockchain transparency and advanced cryptography can reduce uncertainty.
Bridging the Gap Between Crypto Custody and Insurance Coverage
The insurance gap remains one of the crypto sector’s largegest pain points. Despite trillions of dollars in digital assets in circulation, less than are currently insured. Most existing policies cover limited platform hot wallets or narrow loss scenarios, leaving custodians and institutional investors exposed to operational and cybersecurity risks.
By integrating directly with Cobo’s custody stack, 21M Insurance allows for dynamic policy adjustment since terms evolve as security, transaction volumes, and custody models change.
Analysts note that combining the with real-time auditability and dedicated insurance coverage could become the new standard for institutional asset protection. It effectively merges the technological rigor of custody with the financial secureguards of regulated insurance.
If successful, this collaboration could inspire similar alliances between custody providers, underwriters, and regulatory authorities, paving the way for a future where digital asset protection is as standard as financial auditing.
Ultimately, the two firms are not just managing risk — they’re redefining what “insured custody” means in the crypto industry.
