Today blockchain insurance startup Nayms announced a funding round at an $80 million valuation based on a private token sale. The startup, which counts Aon as a partner, received regulatory approval in Bermuda last year to create blockchain-based cells, which are similar to Lloyds syndicates. The way the insurance policies are sold is pretty conventional, with Nayms providing a public blockchain-based marketplace for the funding.
The amount raised by Nayms was not revealed but is likely around $3.5 million. Nayms confirmed the backing raised to date as $12 million and Crunchbase pegged cumulative funding at $8.4 million mid-2021. UDHC led the round and is run by former senior members of the Maker Foundation, the developer of the MakerDAO protocol. Other participants in the funding were Tokentus and Keyrock.
“Using blockchain technology, Nayms extends traditional risk markets using decentralized tools and features that take risk pricing and management to a new level,” said UDHC CEO Steven Becker. “Bringing on-chain capability to traditional markets creating a new, efficient, and transparent financial future is the primary focus of UDHC, and we believe the team at Nayms has the potential to shape that future.”
Unsurprisingly, the first type of insurance policies supported are for blockchain-related insurance, such as cryptocurrency exchanges, custodians and DeFi smart contracts. However, they don’t have to be blockchain-based and the plan is also for carriers to provide directors and officers liability insurance to crypto firms.
Nayms is getting close to launching the first insurance programs backed by Nayms cells for companies such as Aon, and two specialist crypto insurers Breach and Evertas. Evertas is a Lloyd’s of London coverholder. Each of the companies would have its own cell or segregated account with its own token.