LONDON, UK / ACCESS Newswire / July 9, 2025 / SDI Partners, a London-based investment management firm, today announced the expansion of its custodial digital asset insurance coverage to $2.5 billion, reflecting the firm's continued AUM growth beyond $1 billion. The expanded coverage is structured to match the scale and complexity of SDI's operations across multiple trading venues and liquidity pools, with a focus on safeguarding USDC and USDT held in segregated accounts via the Ledger Enterprise custody platform.
The increase from the previous $900 million policy forms part of SDI's broader institutional infrastructure enhancement program, ensuring that custody, insurance, and governance controls are scaled in proportion to the firm's client capital base.
Institutional Insurance Architecture
The revised insurance structure is anchored on a multi-layered crime insurance program, combining pooled and custom underwritten policies:
$150 million: Provided under Ledger Vault's pooled crime policy, underwritten by Arch Insurance (UK) Limited, with coverage triggered in the event of hardware breach, internal collusion, or malicious loss.
$2.35 billion: A bespoke excess crime insurance facility arranged independently by SDI Partners via Lloyd's of London syndicates and select digital asset underwriters, providing additional capacity above the base layer.
$2.5 billion total aggregate coverage, effective immediately, providing protection against:
Third-party theft of private keys or seed materials
Breach of Hardware Security Modules (HSMs) in certified data centers
Insider theft or collusion by Ledger or SDI personnel
Protocol-level exploits resulting in asset loss from custodied wallets
This expanded coverage applies specifically to digital assets (USDC & USDT) custodied on SDI's institutional-grade infrastructure, and is validated through independent audit and periodic verification from participating underwriters.
Scaled Custody, Without Compromising Liquidity
SDI Partners' digital assets are custodied via Ledger Enterprise, a SOC 2 Type 2-certified infrastructure platform trusted by global banks and crypto-native asset managers. Ledger Enterprise integrates:
Hardware Security Modules (HSMs)
Personal Security Devices (PSDs)
Proprietary OS and multi-authorization signing workflows
Governance APIs and real-time reporting
The firm uses multi-signature governance frameworks tailored to strategy-specific risk profiles, ensuring that key management, movement approvals, and role-based access remain segregated, auditable, and resilient under operational stress.
"The recent increase in AUM to over $1 billion required us to reassess our entire custodial risk perimeter," said David Rosenberg, Managing Partner at SDI Partners. "We operate in a space that combines high-velocity trading with institutional accountability. Our insurance structure now mirrors our trading infrastructure-scalable and deeply integrated with operational controls."
This development reflects SDI's continued investment in enterprise risk management, treasury control, and regulatory readiness. The firm is also currently pursuing additional Tier-1 service integrations across compliance, fund administration, and prime brokerage functions.
About SDI Partners
Founded by technologists and asset managers in 2022, SDI Partners is a London-based AI integrated investment manager utilising quantitative strategies including market making, volatility arbitrage, and delta-neutral options trading. Since opening to outside capital in January 2024, SDI Partners has attracted a global base of professional and accredited investors, scaling AUM beyond $1 billion within 18 months. For more information, visit: www.sdi.partners
Media Contact
Organization: SDI Partners
Contact: Jeremy Greene
Email: media@sdi.partners
Website: https://sdi.partners
SOURCE: SDI Partners
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/sdi-partners-scales-custodial-insurance-coverage-to-2.5-billion-1047413
