London-based insurtech Nayms raises £1.5M to develop digital insurance for cryptocurrency
The cryptocurrency market is expected to reach $11T (nearly £8T) in three years. To cover the same, London-based insurtech startup Nayms provides cover for crypto-related risk to support the growing digital ecosystem.
Funding to develop insurance for cryptocurrency
Recently, Nayms closed £1.5M seed funding in a round led by XBTO along with investors from capital markets, insurance and crypto such as Coinbase Ventures, Maven11 and the founders of Synthetix and Insurtech Gateway, the co-founder of the project with Dan Roberts, the CEO.
The insurtech startup will deploy this funding to launch larger pilot programs in preparation for a full launch slated for later this year. This follows the graduation from the Bermuda Monetary Authority (BMA) sandbox into a complete regulatory license. The company will also build its customer base and work on capital market integrations ahead of the Series A funding round planned for Q1 2022.
Greg Carson of lead investor XBTO said: “We are pleased to invest in the Nayms project alongside some of the top insurtech investors. We see insurance as an important spoke of the cryptofinance evolution.“
First pilot project in the pipeline
The seed funding round comes at the time of the company’s first pilot, which is a digital insurance contract placed by Breach Insurance for its client Coinlist.
Breach CEO, Eyhab Aejaz said: “Our partnership with Nayms allows Breach to cover complex digital asset risks at scale — similar to how this problem is solved for traditional catastrophic risk insurance in the P&C and Surplus Lines markets.”
Following the pilot, Nayms CTO Theodore Georgas said: “This pilot represents a small but significant milestone for Nayms as we move into 2021 with accelerating traction. It is our belief that the problem of scaling insurance protection for the digital asset space will be solved through a collaboration between regulated underwriters/brokers and capital markets. Nayms is building the infrastructure to facilitate this collaboration.”
Eyes to expand in insurance market
Founded by Dan Roberts and Theodore Georgas, Nyams usses smart contracts to collateralise cryptocurrency risk with matching crypto assets, thereby bringing insurance at no FX-risk to a segment that is 96% uninsured. The company has partnered with one of their investors, MakerDAO in order to collateralise these “Smart Insurance Contracts” using their stablecoin, Dai.
With the partnership, the insurtech company intends to apply their platform to traditional risk in the wider insurance market. Nayms CEO, Dan Roberts, said, “Nayms is on a mission with our ecosystem of investors, partners, advisors and our growing team to provide brokers with a tradable, transparent, traceable and trusted insurance contract for this emerging risk category of digital assets. We look forward to seeing how the world’s brokers start interacting with this technology in the months and years to come.”