The Biggest Insurer Opens the Cryptomarket for Institutional Investors
CryptoBit News Today1 min read
Major insurer American International Group has announced plans to offer cryptocurrency custody and security services to institutional investors. Though AIG has a global presence in insurance, this is the company's first foray into the cryptocurrency space. ## The Announcement
in a statement released yesterday, AIG laid out plans for a new cryptocurrency custody and security product for institutional investors. It said the new service will be launched in partnership with crypto security startup Coincover.
AIG has not specified the cryptocurrencies it will support, though it is clear it is interested in both Bitcoin and Ethereum. It did not mention a detailed rollout plan, but it appears to be a more focused project, at least at launch, as it targets only institutional clients. ## Rationale
In the wake of the Mt. Gox collateral damage and the Parsifal bitcoin savings fund fraud, institutional investors have been nervous about the security of cryptocurrency markets. CoinDesk has previously reported a few instances of firms that have attempted to crack into the market by only accepting certain types of investors, including financial giants like digital assets manager CoinShares, and the PayPal backed bitcoin fund Bitpesa.
However, for now at least, AIG still seems to be in the cautionary phase, noting that while it is "monitoring the cryptocurrency market," it is "not currently offering any products or services related to cryptocurrency." ## The Opportunity
While AIG's services are aimed at institutional investors, it could ultimately benefit those in the cryptocurrency community who do not have access to such services. It would stand as a third party to handle the security, custody, and safety of assets, making it possible for more businesses to accept cryptocurrencies as a form of payment.
For now, though, it remains to be seen whether AIG's entry into the cryptocurrency space will bring in more institutional money or whether it will simply serve as another example of a large player dipping a toe in the market without any serious intent.
