Nexo partners with the foremost providers of security in the blockchain space, including BitGo, Ledger Vault and Bakkt, among others. Collectively, they carry $775M in insurance protections for digital assets held on the Nexo platform via the most prestigious syndicates of underwriters.
BitGo, the leader in digital asset financial services, is our long-standing partner. They provide us with cold storage wallets, bank-grade Class III vaults through their SOC 2 Type 2-certified custodianship program, along with a $100 million insurance packet via Lloyd’s of London.
The insurance policy comes in at no additional cost and covers digital assets where the private keys are held 100% by BitGo in the event of:
- Third-party hacks, copying, or theft of private keys
- Insider theft or dishonest acts by BitGo employees or executives
- Loss of keys
Nexo has chosen BitGo as its custodian because BitGo provides 100% cold storage technology in bank-grade Class III vaults and the BitGo platform is SOC 2 Type 2 certified. Nexo is also making use of BitGo’s Enterprise Solution which incorporates the Cryptocurrency Security Standard Level 3. The CCSS Level 3 requires multiple actors for all-critical actions, as advanced authentication mechanisms are employed to ensure the authenticity of data, while assets are distributed geographically and organizationally.
Ledger Vault insures digital assets for up to $150 million through a customized insurance program backed by Arch and Marsh. Leveraging Ledger’s industry-leading and independently-certified security technology, the Ledger Vault SaaS solution provides a cloud-based digital assets custody infrastructure for financial institutions and professional investors to securely control their crypto assets with a multi-authorization self-custody management solution.
You can read our dedicated article for more details.
Bakkt is a trusted digital asset platform providing Nexo with Bitcoin and Ethereum custody in the Bakkt Warehouse, the company’s regulated custodian, which comprises both online (warm) and air-gapped (cold) digital asset storage to minimize risks. For additional layers of protection of Nexo users’ assets, Bakkt’s warm and cold wallets are built on secure wallet architecture, along with multi-zone physical security, including bank-grade vaults. Bakkt is regulated by the New York Department of Financial Services, registered as a Money Service Business with FinCEN, and has a BitLicense through the New York Department of Financial Services. Nexo users also benefit from $125M of insurance in place at the Bakkt Warehouse.
If you would like to learn more, visit our blog.
To increase transparency, Nexo is working with Armanino to conduct a Proof of Reserves assessment and provide real-time attestations over the company’s custodial holdings. With this pioneering move for the crypto lending space, we give you the ultimate peace of mind that Nexo is able to meet client obligations at all times.
See today's report here.
Platform and data security
- 2FA Authentication: SMS verifications, email verifications, authenticator app support
- Biometric Identification: Using fingerprint or face recognition
- Whitelisting: Manage your crypto addresses or improve the security of your account even further by enabling Address Whitelisting. Instructions can be found here.
- Withdrawal Confirmations & Log-in Alerts
- Data Protection and Confidentiality: Your personal information is contained behind secured networks and is only accessible to a limited number of persons who are required to keep the information confidential. Аll sensitive/credit information you supply is encrypted via Secure Socket Layer (SSL) technology.
Accredited Information Security Management Systems: ISO/IEC 27001 guarantees that Nexo’s security infrastructure is of the highest standard, thus ensuring the safety of the enterprise and minimizing risks for all clients and investors. Being ISO/IEC 27001 certified, Nexo utilizes the most rigorous security policies, impeccable risk assessment, data protection, and state-of-the-art cybersecurity.
Please note that it is the account holders’ responsibility to safeguard their accounts by means including but not limited to using a strong password, enabling two-factor authentication and controlling all login credentials to Nexo. Clients remain owners of the crypto assets placed into Nexo accounts. You can check out our tips on how to keep your Nexo account safe and protect yourself from internet phishing.
To learn more, please visit https://nexo.io/security
You can also find more information about Nexo’s custody and insurance in depth and at length in this article.