How Circuit Makes Crypto Insurance Affordable

In this Stabledash Live interview from Stablecoin Conference LATAM 2025, Drew sits down with Harry Donnelly from Circuit to explore how pre-signed transaction technology is making crypto insurance actually affordable. Circuit was the only crypto company selected for Lloyd's of London Lab, where they discovered why crypto insurance costs 2 to 5% of total assets annually (hot wallet coverage) and built technology to fix it.

The innovation: Automatic Asset Extraction (AAE) creates transaction-level security without touching private keys. Circuit manages pre-signed transactions like stamped letters you haven't mailed yet. If something goes wrong (wallet provider goes down, credentials stolen, hack detected), Circuit automatically sends pre-approved instructions to move funds to safety. This works even if your wallet provider disappears or goes bankrupt because the transaction was already signed in advance.

The Lloyd's partnership proved crucial. Harry explains crypto insurance resembles hurricane insurance where single events wipe out everything, unlike car insurance with distributed small losses. Making it affordable requires preventing catastrophic loss events entirely. Insurers now recognize Circuit as critical infrastructure and offer discounts to clients using it because Circuit prevents them from paying out claims. Circuit supports Bitcoin, Ethereum, Solana covering 95 to 98% of institutional holdings.

Timestamps:
01:08 - Circuit's mission: Preventing catastrophic crypto losses
03:22 - Lloyd's of London Lab incubation program (only crypto company selected)
04:20 - Why London remains global insurance hub
05:42 - Why crypto insurance costs 2 to 5% annually
07:18 - How Automatic Asset Extraction (AAE) works
08:25 - Pre-signed transactions: Separating signing from sending
10:08 - Protection against wallet provider bankruptcy and downtime
12:20 - The messaging protocol analogy: Wax seals and private keys
15:16 - Go-to-market: Wallet providers as partners, exchanges as customers
16:12 - Exploring stablecoin issuer and payment provider use cases
18:00 - Chain coverage strategy: Bitcoin, Ethereum, Solana (95%+ institutional assets)
21:20 - 10-year vision: Indispensable risk infrastructure layer
22:42 - $3 billion lost to hacks in 2025 alone

About Harry Donnelly & Circuit:
Harry Donnelly represents Circuit, building transaction-level security infrastructure that prevents catastrophic crypto losses without touching private keys. Circuit's Automatic Asset Extraction technology manages pre-signed transactions that automatically execute during emergencies (hacks, wallet provider failures, bankruptcies). As the only crypto company in Lloyd's of London Lab cohort, Circuit partnered with global insurers to understand why crypto insurance costs 2 to 5% annually and built technology enabling insurers to offer discounts. Circuit works with wallet providers as partners and serves exchanges, funds, and custodians as direct customers.

About Stabledash Live:
Stabledash Live brings exclusive conversations from leading stablecoin conferences, exploring infrastructure innovations, risk management strategies, and technologies enabling global digital dollar adoption.