BDIC Introduces Stablecoin Insurance Product for Institutions

Blockchain Deposit Insurance Corporation (BDIC) has launched StableCover Pro, an insurance product designed to safeguard institutional holdings of stablecoins that comply with regulatory standards.

The product offers coverage for risks such as reserve failure, redemption issues, custody, and technical vulnerabilities, with optional add-ons addressing market disruption and cross-chain risks. According to the company, the offering is aimed at banks, asset managers, insurers, pensions, and corporations exploring stablecoins for treasury operations, as well as family offices and high-net-worth individuals.

"StableCover Pro fills a new critical gap in the market based on the interim regulatory guidance," said BDIC co-founder Paul Kohli, who emphasized that institutions adopting stablecoins need robust risk mitigation tools. BDIC's founder and CEO Jeffrey A. Glusman added that the firm's goal is to provide institutions with the same confidence they expect from holding fiat or sovereign debt, now extended to digital assets.

The launch follows recent U.S. regulatory developments, including the SEC's recognition of compliant stablecoins as cash equivalents. BDIC, headquartered in Hong Kong, also announced plans to expand into the Caribbean and continue developing insurance solutions for tokenized assets through its new RWA Consulting division.