The round was led by XBTO, while investors across a number of sectors such as Coinbase Ventures, Maven11, and the founders of Synthetix and Insurtech Gateway all contributed to the funding.
The investment will largely be placed into pilot programmes as the firm aims for a full launch in 2021.
Theodore Georgas, CTO at Nayms, said: “This pilot represents a small but significant milestone for Nayms as we move into 2021 with accelerating traction.
“It is our belief that the problem of scaling insurance protection for the digital asset space will be solved through a collaboration between regulated underwriters/brokers and capital markets. Nayms is building the infrastructure to facilitate this collaboration.”
The startup uses smart contracts to collateralise cryptocurrency risk with matching crypto-assets, therefore bringing insurance with no FX-risk to a largely uninsured market.
By acting alongside one of its investors, MakerDAO, the firm can apply its platform to the wider insurance market, something it hopes to achieve through an initial pilot with SafetyWing Insurance.
Dan Robers, CEO at Nayms, said: “Nayms is on a mission with our ecosystem of investors, partners, advisors and our growing team to provide brokers with a tradable, transparent, traceable and trusted insurance contract for this emerging risk category of digital assets.
“We look forward to seeing how the world’s brokers start interacting with this technology in the months and years to come. We welcome our new investors who join us at this key time in our company’s development.”