UK InsurTech start-up Nayms has received £1.5 million in an investment lead by XBTO.

The InsurTech uses smart contracts to collateralise cryptocurrency risk with matching crypto-assets, with the aim of bringing insurance with no FX-risk to a space that is 96 per cent uninsured.

According to the London-based start-up, the cryptocurrency market is expected to reach a value of $11 trillion in the next 3 years.

The company will use the funding to launch larger pilot programs in preparation for a full launch later this year, following graduation from the Bermuda Monetary Authority (BMA) sandbox into a full regulatory license.

Nayms said that the project now has runway to build its customer base and work on capital market integrations prior to its Series A, planned for Q1 2022.

The new funding coincides with the launch of the company’s first pilot, a digital insurance contract placed by Breach Insurance for their client, Coinlist.

“Nayms is on a mission with our ecosystem of investors, partners, advisors and our growing team to provide brokers with a tradable, transparent, traceable and trusted insurance contract for this emerging risk category of digital assets,” said Dan Roberts, Nayms chief executive. “We look forward to seeing how the world’s brokers start interacting with this technology in the months and years to come. We welcome our new investors who join us at this key time in our company’s development. We look forward to an exciting 2021.”

Following the pilot, Nayms chief technology officer, Theodore Georgas said:“This pilot represents a small but significant milestone for Nayms as we move into 2021 with accelerating traction. It is our belief that the problem of scaling insurance protection for the digital asset space will be solved through a collaboration between regulated underwriters/brokers and capital markets. Nayms is building the infrastructure to facilitate this collaboration.”

Greg Carson of lead investor XBTO said:“We are pleased to invest in the Nayms project alongside some of the top InsurTech investors. We see insurance as an important spoke of the cryptofinance evolution.“

Other investors across insurance, capital markts, and crypto, included Coinbase Venturers, Maven11, the founders of Synthetix and InsurTech Gateway.

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