By
Temitope Olatunji
April 18th, 2024
Bridge Mutual noted that all stablecoin insurance claims will be reimbursed immediately.
Bridge Mutual has introduced insurance services to the fast-growing stablecoin industry. Dubbed the ‘Bridge Mutual Insurance’, it will provide coverage up to the over $23 billion industry. Stablecoin users have a sigh of relief as attacks in the stablecoin industry get reported frequently.
The company identified a gap in the market as the stablecoin industry grows exponentially due to increased demand. Apparently, there is very little the blockchain technology can do to help users recover stolen stablecoins thus making insurance covers the best option.
Built on the Polkadot network, the Bridge Mutual insurance service promises the customers competitive fees in the market.
Bridge Mutual Stablecoin Insurance Coverage
Apparently, users can access these insurance policies without remitting their personal information. This will be enabled by users purchasing BMI tokens and staking them in Bridge coverage pools.
“Funds within the coverage pools are automatically invested on-chain in other platforms, such as Compound and Aave to generate yields for users. Quotes are generated on-chain by an actuarial formula; users may connect their Web 3 wallet (Metamask and others) to pay for the coverage after receiving the quote,” the company noted in the press release.
Moreover, the company has promised that part of the paid insurance premiums will be split among users as a profit-sharing incentive.
Bridge Mutual noted that all stablecoin insurance claims will be reimbursed immediately. However, any other type of claim to the company will undergo three vetting stages to be settled. The three-phase voting process will take place not more than a month and a half to ensure a fair and accurate process that is void of fraud.
Michael Miglio the CEO and Founder Bridge Mutual hailed the new insurance policy that is set to venture into the vast stablecoin market. In a bid to assure the customers, he stated that no Bridge team member will have access to the funds that users stake on the platform.
Bridge Mutual has received significant market endorsements to fund its stablecoin insurance projects. Notably, the company noted that it is currently in negotiations with leading blockchain funds to fill its private seed round.
Stablecoin Market
According to the metrics provided by CoinGecko, the stablecoin industry has skyrocketed in the past few months to reach a market capitalization of $23,598,334,391 at the time of writing. In the past 24 hours, the stablecoin industry had a trading volume of $34,962,060,722.
Leading the list of stablecoin tokens by market capitalization is Tether with a market cap of $17,893,184,106. Second is the USDC that has a market cap of $2,825,828,795 and DAI closes the top three with a market cap of $1,012,775,252.