Decentralized insurance service provider Bridge Mutual has launched a product that covers stablecoin risks.
According to a Nov. 17 announcement, Bridge Mutual’s offering will ensure smart contracts, stablecoins, and exchanges against a market crash or an attack.
Bridge Mutual aims to provide coverage for the risks involved in holding stablecoins, which now have a total market cap of over $20 billion and are growing fast. While many in the cryptocurrency space believe this kind of asset is mostly devoid of risk, stablecoins can lose their value if they stop being accepted, sometimes can be hacked, and often require a company to be trusted to hold assets to back them.
As Modern Consensus reported in late September, those risks are big enough that the European Central Bank…