Liberty Specialty Markets (LSM), part of Liberty Mutual Insurance Group, has launched a new insurance product tailored for financial institutions operating in the cryptocurrency market.

The product was developed in response to growing demand from the financial sector, which faces ongoing uncertainty due to rapid macroeconomic, regulatory, and technological changes—such as the rise of digital banking and cryptocurrencies.

It is designed for European crypto-asset service providers, particularly those compliant with the EU’s Markets in Crypto-Assets directive—a framework aimed at creating uniform rules and stronger investor protections.

Coverage includes risks related to professional liability, management errors, theft, and fraud.

With limits of up to €3 million, the product enables LSM to support a broad range of providers, from traditional banks and asset managers to blockchain startups.

Jorge Chao, Head of Financial Institutions, LSM Europe, said, “The crypto revolution presents significant opportunities, with increasing adoption redefining economic and financial relationships worldwide. The complex risks associated with that are however a major strategic issue for financial institutions.

“The product announced today has been meticulously created, working with our cyber and technology teams to close knowledge gaps that can hinder crypto insurance propositions, allowing clients to pursue opportunities in the fast-developing crypto market safely.”

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