Soter Insure has added Standard Chartered’s venture arm SC Ventures and Japan’s SBI Group as strategic investors in the second close of its Series B funding round, led by Galaxy. The digital asset insurance specialist also secured follow-on investment from existing backer Token Bay Capital. The expanded investor group brings traditional financial institutions and digital asset firms together behind a business focused on insurance coverage for banks, asset managers and other participants in digital markets. Soter plans to use the funding to expand underwriting capacity, strengthen its technology and enter additional markets across Asia-Pacific, Europe and the United States.

Traditional Finance Investors Back Digital Asset Insurance

The second close adds two financial groups with established businesses across banking, investment and digital assets. SC Ventures operates as the innovation and venture-building arm of Standard Chartered, while SBI Group has businesses spanning financial services, asset management and crypto-related activities.

They join Coinbase Ventures, Franklin Templeton and Brevan Howard Digital, which participated in the first close announced in July 2026. Galaxy led the Series B, while Token Bay Capital has invested again after backing Soter during its Series A.

The companies did not disclose the amount raised in the second close or provide a revised valuation. The announcement instead focuses on the strategic purpose of the investment: increasing the availability of insurance for institutions operating in digital asset markets.

The investor composition is notable because digital asset insurance sits between two traditionally distinct markets. Crypto-native businesses need protection against risks associated with custody, blockchain infrastructure and smart contracts, while banks and asset managers require coverage that fits their established risk-management and governance frameworks.

Soter is seeking to address that overlap through insurance products designed specifically for institutional digital asset activity.

Insurance Capacity Remains a Constraint for Institutional Adoption

Digital asset businesses face risks that do not always fit conventional insurance products. These include theft of digital assets, failures in custody arrangements, smart contract vulnerabilities, validator slashing events and professional liability associated with operating digital asset services.

Soter’s product portfolio covers several of these areas. Its offerings include directors and officers liability, professional indemnity, crime, specie, slashing and smart contract failure insurance. The company says its policies can be denominated in both fiat currencies and native digital assets.

These coverage categories address different operational exposures. Crime and specie policies relate to theft and loss risks, while directors and officers and professional indemnity coverage address management and professional responsibilities. Slashing protection is relevant to proof-of-stake blockchain participation, where validators can face penalties for certain protocol violations. Smart contract coverage targets risks arising from vulnerabilities or failures in blockchain-based applications.

For institutions, access to suitable coverage can influence whether digital asset activities meet internal risk and governance requirements. Insurance is not a substitute for cybersecurity, custody controls or regulatory compliance, but it can form part of a broader risk-transfer strategy.

The capacity issue is particularly important. Even where an insurer offers a relevant policy, the available coverage limits, exclusions, underwriting requirements and ability to support large institutional exposures determine whether it can meet a bank’s or asset manager’s needs.

Soter says the new investment will help expand its insurance capacity and deepen its underwriting capabilities. The company has not disclosed specific increases in coverage limits or new policy capacity resulting from the funding.

Soter Plans Expansion Across Asia-Pacific, Europe and the US

The company plans to use the proceeds to strengthen its technology and underwriting operations while expanding into established and emerging digital asset markets.

Asia-Pacific is a particular focus, with Soter identifying its Hong Kong presence as part of its regional expansion strategy. Europe and the United States are also included in its target markets.

Soter operates from Abu Dhabi and Bermuda, with additional offices in London, New York and Dubai. Its website states that the company is authorized and regulated by the Bermuda Monetary Authority under the Bermuda Insurance Act 1978. It has also announced authorization from the Dubai Financial Services Authority for insurance intermediation through its DIFC-based entity. soter.

The distinction between insurance underwriting and insurance intermediation matters when assessing its international footprint. Regulatory permissions can differ by entity, activity and jurisdiction, and the company’s expansion plans do not automatically mean every product is available in every market.

The investment from SBI Group could provide strategic relevance in Asian financial markets, while SC Ventures adds a connection to Standard Chartered’s financial services and digital asset innovation activities. Neither investor has announced a specific insurance distribution agreement or product deployment alongside the investment.

Strategic Investors Connect Banking and Digital Asset Markets

Soter’s expanded investor base reflects growing interest in the infrastructure needed to support institutional participation in digital assets.

Galaxy has led the company’s Series B, while Coinbase Ventures, Franklin Templeton and Brevan Howard Digital joined the first close. SC Ventures and SBI Group bring additional financial-sector perspectives, and Token Bay Capital has reinforced its earlier backing.

SC Ventures Principal Herve Francois described insurance as an important but often overlooked component of the digital asset ecosystem. SBI Group representative Yangte Kim similarly highlighted the need for robust insurance solutions as digital assets gain wider adoption.

For Soter, the immediate challenge is turning that investor support into greater underwriting capacity, broader product availability and stronger technology infrastructure.

The market opportunity extends beyond cryptocurrency exchanges. Banks, custodians, asset managers, tokenization platforms and other financial institutions may require protection for different combinations of digital asset custody, operational, technology and management risks.

However, institutional demand alone does not guarantee a scalable insurance business. Insurers must assess complex exposures, price policies appropriately, manage concentration risk and secure sufficient capital and reinsurance support.

The second Series B close gives Soter additional strategic backing as it pursues that market. Whether the company can translate the investment into insurance capacity at institutional scale will depend on underwriting execution, regulatory access and the availability of suitable risk capital.

For the broader financial technology sector, the development highlights an important part of digital asset infrastructure that receives less attention than trading, custody and tokenization: the insurance mechanisms needed to manage institutional risk.

Market Landscape

Digital asset insurance is developing alongside institutional adoption of cryptocurrencies, tokenized assets and blockchain-based financial services.

Three trends are shaping the market:

• Institutional risk transfer: Banks, asset managers and digital asset service providers need insurance products that address custody, theft, operational failures and professional liability.
• Specialized underwriting: Smart contract vulnerabilities, validator slashing and digital asset theft require risk assessment that differs from conventional commercial insurance.
• Regulated market expansion: Insurers operating across jurisdictions must navigate different licensing, underwriting and distribution requirements while building capacity for institutional clients.

Soter’s funding expansion reflects the demand for specialist coverage, but the market’s development will depend on whether insurers can provide meaningful limits, sustainable pricing and reliable claims processes.

5. Top Insights

• SC Ventures and SBI Group joined Soter Insure’s Galaxy-led Series B as strategic investors in its second close.
• Token Bay Capital also made a follow-on investment, joining investors from the first close, including Coinbase Ventures and Franklin Templeton.
• Soter plans to expand insurance capacity, underwriting capabilities and technology infrastructure using the new proceeds.
• Its coverage portfolio includes crime, specie, directors and officers, professional indemnity, slashing and smart contract failure insurance.
• The company is targeting further expansion across Asia-Pacific, Europe and the United States, with Hong Kong part of its Asia-Pacific strategy.

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