Circuit, a digital asset infrastructure provider, has launched Response, a real-time risk containment system for crypto asset custodians, exchanges, and payment providers, which aims to help contain crypto hack risk.
This launch follows Circuit’s completion of Lloyd’s Lab Accelerator Cohort 14 and early investment from the Lloyd’s Central Fund.
This demonstrates the insurer marketplace’s confidence that the long-standing gap in detecting, containing, and pricing digital asset risk is closing, the firm noted.
Response allows for the previously unquantifiable crypto crime risk to be both measurable and insurable.
By detecting and containing attacks in under two seconds, the system enables insurers to offer preferential coverage terms, allowing institutions that adopt Response to qualify for up to 15% reductions in crypto asset insurance premiums, while aligning underwriting with traditional financial risk standards.
Each year, despite preventative technologies (MPC, multising, HSMs), billions in digital assets are lost annually.
These solutions cannot contain a breach once it starts, Circuit explains. The company’s new Response system provides the missing layer by using pre-authorised fallback transactions and automatic broadcast to instantly move assets to safety, outpacing attack finalisation on Bitcoin, Ethereum, and other major blockchains.
“We’re proud to have backed Circuit through the Lloyd’s Central Fund,” said Rosie Denée, Head of Innovation and Commercial Education at Lloyd’s. “We look forward to seeing this deliver real value to the market.”
“Until now, crypto custody has been binary. Either your defenses hold or you lose everything,” said Harry Donnelly, CEO of Circuit. “Response captures a recovery window that didn’t exist before. That’s what lets insurers finally price this risk with confidence.”
Response supports both insurers and institutions as digital assets continue to move into regulated financial markets, and recoverability emerges as a prerequisite for insurability, Circuit highlighted.
