Regulated and Safe Crypto Interest Accounts with Insurance

Regulated and Safe Crypto Interest Accounts with Insurance


This article will evaluate regulated and safe crypto interest accounts with insurance.

Crypto lending companies with interest accounts are open to announcing and marketing the insurance they use and their regulations.

However, because of this, many companies are not transparent with their security IT standards, which can be hard to compare. They all have the same explanation. Such transparency would make them more vulnerable. This is, of course, genuine, and therefor, it can seem like a trustworthy explanation.

What is a Safe Crypto interest account?

It´s hard to define what a secure cryptocurrency account is, and it´s impossible to determine what is the safest wallet to store crypto. However, we have listed a few checkpoints we have worked through for our listed companies
  • Licenses and Regulations
  • Insurance and Cold Storage
  • Account and Login Security
  • Team and Operational history

Licensed and Regulated Crypto Interest Accounts

A licensed and regulated crypto company offering interest accounts as a service must provide certain information to the authorities

Such information could consist of

  • Adequate operational capital
  • The internal and external auditor is mandatory
  • Sound Anti-money laundering (AML) policies and procedures
  • Data protection and security

Crypto Interest Accounts with Insurance and Cold Storage

Crypto interest account providers usually use 3rd party services for insurance and cold storage. Some of these services are

Ledger Vault

Ledger Vault is a cold-storage solution optimized for institutional usage. It is one of the most secure and flexible ways for exchanges and crypto banks to store and manage their private keys. The Vault also ensures digital assets. NEXO uses Ledger Vault for custodial infrastructures, like insurance and cold storage. YouHodler has also partnered with Ledger Vault.

Galaxy Digital and BitGo 

Galaxy Digital acquired BitGo and provides cold storage wallets with insurance protection. In addition, Nexo is using BitGo, among other crypto exchanges and lending platforms.

Fire blocks

Many crypto business use Fireblocks software and APIs to custody, manage treasury operations, access Defi, mint & burn tokens, and manage their digital asset operations. For example, Midas Investments are using Fireblocks.


Bakkt Warehouse, the company’s regulated custodian, comprises both online and cold storage. For extra protection, Bakkt’s wallets are covered by an insurance policy from a leading global carrier.

Estana Custody

Kraken is using Estana’s custody.

Celsius Self-insurance 

Celsius acquired the Israeli crypto custody technology firm GK8 for $115 million. As a result, they are about to offer self-insurance and will now be able to provide an “all-in-one platform built for banks and financial institutions.”

Account and Login Security

Personal account security is critical, and even if the service supplier must develop these features, it´s up to the end user to enable them and use them. Many crypto applications, wallets, and exchanges force users to switch on 2 FA significantly when the value exceeds a certain amount.

Below, we have listed some features we think can be worth considering when comparing personal account and login security standards. 

  • 2 FA Authentication (Google Auth)
  • Withdrawal confirmation (through 2nd password, email, SMS, Google Auth)
  • Allowing withdrawal addresses or IPs
  • Login alerts (through email or SMS)

Most of thety features mentioned above are implemented in all serious cryptocurrency platforms. 

Team and Operational History

Another essential factor to consider

  • Who did start the company, and what history does the team have?
  • How long did the company operate?
  • Did the company experience any hacks?
Today the team can quite easily be investigated via LinkedIn. For instance, all serious CEOs have a LinkedIn profile, like NEXO and BlockFi. Also, all have several interviews on Youtube where you can find more information about them and the company.

It’s easy to find how long the company has operated. Of course, there is more risk to entering and depositing into a new company than a company that has existed for several years.

Suppose a crypto company did experience any hack or not doesn’t tell you too much because there have been so many hacks. However, how they handle it in terms of communication and repaying the hack to their customers is very important.

Safe Interest Account Summary

In the table below, we have summarized the different interest account providers.

  1. Licenses and Regulations
  2. Insurance 
  3. Account and Login Security
  4. Team and Operational history
However, there are different definitions for different terms, so don´t take this table 100% accurate. Instead, read more about each company and its safety standards in the summary text below.






Binance Safety Information

NEXO Safety Information

YouHodler Safety Information

  • YouHodler is not regulated or licensed in any jurisdiction. 
  • They are connected to Ledger Vault, a digital asset management system and $150M pooled crime insurance.
  • YouHolder has all account and login security features you need to protect your account.

Kraken Safety Information

Read more about Kraken in our Kraken exchange review. Information

Coinbase Safety Information

Coinbase is regulated and complies with all applicable laws and regulations in each jurisdiction in which it operates.

Coinbase is required to comply with several financial services and consumer protection laws.

Coinbase carries crime insurance that protects a portion of digital assets against losses from theft, including cybersecurity breaches.

However, the policy does not cover any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro account(s) due to a breach or failure of your credentials.