Bermudian crypto specialist Relm has launched Relm II, providing further regulated reinsurance capacity for companies operating in the crypto space.

The new entity offers a collateralised reinsurance business that can accept both fiat and crypto as collateral.

Relm II is domiciled in Bermuda and will operate under the Innovative Insurer – General Business authorization regulated by the Bermuda Monetary Authority.  The IIGB license means that Relm II as well as Relm can trade financially in either fiat or crypto.

The company noted that the ability for Relm II to accept collateral in either fiat or crypto is a critical distinction within the collateralised reinsurance space.  As such, it suggested that Relm can now tap into the substantial pools of aligned investor capital in support of traditional lines of coverage, such as D&O and professional indemnity, as well as Relm’s recent product launches such as smart contract failure insurance.

A particular need for regulated coverage exists within the rapidly expanding decentralized finance space, it added.

According to theblockcrypto.com, there is currently more than $225 billion of total value locked in smart contracts across nearly 2000 projects. Since early 2020, more than $1.8 billion of capital committed to DeFi has been lost via exploits.  With the onboarding of Relm II’s capacity, Relm will be able to offer higher limits of coverage for smart contract failure enabling institutional capital to move into the DeFi sector with more appropriate levels of insurance protection.

Joe Ziolkowski, CEO and co-founder at Relm and Relm II, said: “Our mission is to energize crypto businesses, enabling them to scale and grow. Relm II is an extension of that mission and a further demonstration of our commitment to support emerging sectors and our ability to think creatively and utilise regulated (re)insurance infrastructure to solve capacity problems in the crypto industry. We are excited to collaborate with aligned capital partners to build meaningful insurance capacity as the crypto economy becomes mainstream.”

Follow us on twitter: @risksEmerging