Relm II enables the creation of regulated reinsurance capacity for companies operating in the cryptocurrency space, the insurer said. These companies need significantly higher protection limits than the current insurance and reinsurance market can provide. The capability enabled by Relm II will allow Relm to expand its support for cryptocurrency companies to achieve significant scale and growth.

Relm II's ability to accept both fiat and crypto as collateral is "a critical distinction" in the secured reinsurance space, according to the company. It will allow Relm to leverage "substantial groups" of aligned investor capital to support traditional lines of coverage such as directors and officers or professional liability, as well as the insurer's recent product launches for smart contract bankruptcy insurance, cutthroat insurance and BTC-dominated crypto theft insurance.

Cryptoeconomics: In a decentralized financial space, there is a particular need for regulated coverage, Relm said. According to theblockcrypto.com, there is currently more than $225 billion in total value locked up in smart contracts across nearly 2,000 projects. Since the beginning of 2020, more than $1.8 billion of capital committed to decentralized finance has been lost through exploits. The addition of the Relm II capability will enable Relm to offer higher limits of coverage for smart contract failure, allowing institutional capital to move into the decentralized finance space with more appropriate levels of insurance protection.