Soter raises $23.5M Series B with Galaxy, Coinbase Ventures, Franklin Templeton

Soter Insure, a provider of insurance products for the digital asset economy, has closed the first tranche of a $23.5 million Series B round. Galaxy Digital led again after backing the Series A, with new investors Coinbase Ventures and Franklin Templeton joining, plus follow-on support from Brevan Howard Digital and existing backers.

The lineup is unusually heavyweight for the sector, spanning a crypto exchange arm, a $1.5 trillion asset manager, and a macro hedge fund's digital unit. A second close is expected as Soter finalizes participation from additional strategic investors.

Incubated by Further Ventures and WebN Group, the Abu Dhabi-headquartered company sells specialized coverage to financial institutions — including directors and officers, professional indemnity, crime, specie, slashing, and smart contract failure products. These are denominated in both fiat and native digital assets. It operates out of Bermuda, with offices in London, New York, and Dubai.

Soter will deepen its underwriting and technology capabilities and scale operations across key markets. The final close will bring total funding to $23.5 million, plus over 500 BTC and 2,000 ETH.

"Insurance remains a key gap to institutional adoption of digital assets," said Chris Ferraro, president and chief investment officer of Galaxy. Scarce insurance capacity has been a persistent barrier as more institutions weigh crypto exposure.

Underwriting risks tied to decentralized technologies — from smart contract failures to slashing — are hard to price and largely untested at scale. Soter's crypto-denominated cover also ties its balance sheet to volatile assets.

The investor mix — a crypto native, a traditional asset manager, and a hedge fund arm — points to converging appetite from both sides for institutional-grade infrastructure. "A powerful validation of the platform we are building and the network effect of our strategic capital stack," said founder and chief executive officer Henson Orser. As custody and trading mature, insurance is emerging as the next piece of institutional-grade crypto infrastructure.