UK insurtech startup Nayms has closed a £1.5 million seed round led by XBTO, with Coinbase Ventures, Maven11, and the founders of Synthetix and Insurtech Gateway.

The London-based company wants to insure digital assets “through a collaboration between regulated underwriters/brokers and capital markets,” says CTO Theodore Georgas. Nayms is the infrastructure to make that happen.

The seed round coincides with the start of the company’s first pilot, a digital insurance contract that covers electronic theft and phishing, placed by Breach Insured for their client, Coinlist.

The new funding enables Nayms launch larger pilot programs in preparation for a full launch later in 2021, once the business receives a full regulation license from the Bermuda Monetary Authority. From there the company hopes to build its customer base and work on capital market integrations before its Series A, which is planned for early next year.

The startup uses smart contracts to collateralise cryptocurrency risk with matching crypto-assets, bringing insurance with no FX-risk to a space that is 96 percent uninsured. Nayms has partnered with one of their investors, MakerDAO, to collateralise these ‘Smart Insurance Contracts’ with their stablecoin, Dai.

The hope is that this partnership will allow Nayms to expand outside of digital assets and into the wider insurance market. An upcoming pilot with SafetyWing, Norwegian startup insuring remote workers, will test this out.