Digital asset infrastructure provider Circuit has launched Response, a real-time risk containment system for crypto asset custodians, exchanges and payment providers, designed to help curb the risk of cryptocurrency hacks.
The launch follows Circuit’s completion of Cohort 14 of the Lloyd’s Labs Accelerator, as well as early-stage investment from Lloyd’s Central Fund.
The company noted that this shows confidence in the insurance market that long-standing gaps in detecting, controlling and pricing digital asset risks are closing.
The response has made the previously unquantifiable risk of cryptocurrency crime measurable and insurable.
By detecting and containing attacks within two seconds, the system enables insurance companies to offer preferential underwriting terms, making institutions adopting Response eligible for up to 15% reductions in crypto asset insurance premiums, while aligning underwriting with traditional financial risk standards.
Every year, billions of dollars in digital assets are lost every year despite preventive techniques (MPC, multising, HSM).
Circuit explains that once a breach occurs in these solutions, it cannot be contained. The company’s new response system provides the missing layer by using pre-authorized fallback transactions and automated broadcasts to immediately move assets to a secure location, overcoming attacks on Bitcoin, Ethereum, and other major blockchains before they are finalized.
“We are proud to support Circuit through the Lloyd’s Central Fund,” said Rosie Denée, Director of Innovation and Business Education at Lloyd’s. “We look forward to seeing this bring real value to the market.”
“Until now, crypto custody has been binary. Either your defenses are effective or you lose everything,” said Harry Donnelly, CEO of Circuit. “The response captures a recovery window that didn’t exist before. This allows insurance companies to finally price this risk with confidence.”
Circuit emphasized that the response supports insurers and institutions as digital assets continue to enter regulated financial markets and recoverability becomes a prerequisite for insurability.
