Chainproof Launches as the World’s First Regulated Smart Contract Insurance Provider
Today, Chainproof is launched as the world’s first regulated smart contract insurance provider. Chainproof was incubated by Quantstamp, a leading blockchain security auditor that has secured over $200B in digital asset risk. With seed investment and foundational support from SOMPO Light Vortex and reinsurance backing from Munich Re, Chainproof bridges the worlds of traditional insurance and decentralized finance. By July 2022, Chainproof plans to offer licensed, institutional-grade insurance coverage for open-source, non-custodial smart contracts on public, decentralized blockchains.
The rapidly growing world of DeFi has over $70B of total value locked, a 6000% increase from two years ago according. However, this growth comes with significant risk as hacks and exploits of smart contracts have occurred various times in the recent past. Further, traditional insurers generally lack the historical data and technical expertise required to properly underwrite insurance related to smart contracts. As asset managers continue to seek credible solutions to protect the growing crypto portion of their portfolio, the lack of regulated insurance has kept DeFi from achieving mainstream adoption. Quantstamp’s technical knowledge and deep understanding of the web3 ecosystem enables Chainproof to identify the good risks in this market sector. By combining forces with SOMPO and Munich Re, global leaders in (re)insurance, Chainproof is positioned to become the world’s leading regulated smart contract insurance provider.
“SOMPO is proud to be a foundational partner to Chainproof, a pioneering insurance provider for the growing DeFi economy,” said Koichi Narasaki, CEO of SOMPO Light Vortex and Executive Officer of SOMPO Holdings. “Chainproof represents the leading-edge of regulated insurance solutions for the groundbreaking world of Web3.”
“Quantstamp and Chainproof provide the specific risk assessment expertise which is needed to navigate the emerging DeFi insurance market. Institutional investors will be further enabled to succeed in the DeFi sector, if they are covered by regulated insurance, which we support through reinsurance.” says Andre Knoerchen Head of New Tech Underwriting, from Munich Re.
“We are honoured to have been trusted by such distinguished partners in the traditional insurance industry as SOMPO and Munich Re. Given the fact that there is no such thing as a 100% secure smart contract system, we see the product offered by Chainproof as a must-have for institutional investors who want to navigate the DeFi space safely” said Sebastian Banescu, CEO of Chainproof.