Hong Kong company Onedegree provides insurance for cryptocurrencies – Bitcoin News
Onedegree is a virtual insurance company headquartered in Hong Kong that will provide insurance services for digital assets as part of its cooperation with local cryptocurrency exchanges. Through cooperation, the two companies hope to alleviate concerns that hinder potential investors from entering the crypto market.
Onedegree underwrites insurance policies for crypto assets
There are several licensed virtual insurance service providers in Hong Kong, one of which Onedegree will now provide up to US$100 million in insurance to Hkbitex, an encrypted trading platform operating in global financial centers. The two companies have joined forces to protect the cryptocurrency entrusted by customers to the exchange from risks such as theft and hacking.
According to a report by the South China Morning Post on Thursday, Onedegree has become the first insurance company in Asia to underwrite crypto assets, and few companies in the world provide such services. The publication cited industry sources as revealing that the available coverage is estimated to be less than $1 billion per transaction.
At the same time, Becky Tam, Chief Risk Officer of Onedegree, pointed out that “less than 1% of companies interested in buying cryptocurrency insurance are eligible for this type of insurance.” Her company now hopes to share with others in the industry and regulators Its risk management framework and underwriting standards in order to encrypt insurance Products increase and attract reinsurance companies.
The announcements of Onedegree and Hkbitex are in Bitcoin (Bitcoin), the largest cryptocurrency by market capitalization, arrive The all-time high (ATH) of each coin this week exceeded US$68,500, bring The total value of the crypto economy exceeds US$3 trillion.A new ATH has Since reaching US$69,000. Due to the risks associated with digital assets, partners will target institutional investors who are cautious about entering the field.
Ken Lo, the co-founder of Hkbitex, stated that the crypto industry in China’s Special Administrative Region should now try to attract more institutions into crypto assets. “With more than 1,800 licensed asset management companies, Hongkong Manage more than 3 trillion US dollars in assets. We hope to help asset management companies enter this market so that they can also fulfill their fiduciary responsibilities to ultimate investors,” the entrepreneur explained.
Dealing with cyber threats has always been the main focus of crypto companies that have suffered multiple hacking attacks attack Resulting in the theft of funds. “Custodians and exchange customers want to reduce their risk profile, and insurance is a good hedge against these risks,” commented Murray Wood, head of Aon Financial Professional Asia, a global insurance broker. He also pointed out that regulators are increasingly viewing insurance protection as best practice.
Onedegree’s cooperation with Hkbitex is not the first example of such cooperation.A few years ago, the Gibraltar Blockchain Exchange get An insurance policy covering Callaghan Insurance and crypto wallet service provider Bitgo digital assets in 2019 Guaranteed Through Lloyd’s, a $100 million insurance policy was provided to cover the crypto assets under its custody. In April of this year, the New York Digital Investment Group (NYDIG) Unveil A plan to create bitcoin-driven products and services for the global insurance industry.
Do you want more insurance companies to start providing services designed for the evolving crypto industry? Tell us in the comments section below.
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