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Onedegree Offers Insurance for Cryptocurrencies

Onedegree, a virtual insurance company based in Hong Kong will offer digital asset insurance as part of a partnership agreement with a local cryptocurrency exchange. The two companies hope to reduce the barriers that discourage potential investors from investing in the crypto market by working together.

There are several licensed virtual insurance providers in Hong Kong. Onedegree will now provide coverage up to $100,000,000 to Hkbitex. Hkbitex is a global crypto trading platform. These two companies have joined forces to protect client cryptocurrencies that were entrusted to exchanges against theft and hacking.

Onedegree is the first insurance company to offer crypto asset insurance in Asia, according to the South China Morning Post. This service is not offered by many other companies worldwide. According to industry sources, the available coverage was estimated at less than $1 billion per transaction.

Becky Tam, Onedegree’s chief risk officer, stated that only 1% of companies interested in purchasing cryptocurrency insurance policies are eligible. Her company is now looking to share its underwriting standards and risk management framework with other companies in the sector, as well with regulators, in order to increase crypto insurance offerings and attract reinsurers.

Onedegree and Hkbitex announced the announcement after bitcoin ( Bitcoin), which reached an all time high (ATH) at over $68,500 per currency this week. brings the total crypto economy’s value to more than $3 Trillion. A new ATH has been achieved at $69K. Due to the risk associated with digital assets, institutional investors are unlikely to enter the space. The partners will target institutional investors.

Ken Lo, co-founder of Hkbitex, noted that the Chinese cryptocurrency industry should be trying to attract more institutions to crypto assets. Hong Kong has more than $3 trillion in assets under its control, with over 1,800 licensed asset mangers. The entrepreneur explained that they want to assist asset managers in entering this market in ways that allow them to fulfill their fiduciary obligations to their investors.

Crypto businesses have had to deal with cyber threats after they were the victims of numerous hacking attacks that resulted in the theft of funds. Murray Wood, Asia head for financial specialties at Aon, stated that clients of exchanges and custodians want to lower their risk profiles and that insurance is a good way to do this. He noted that insurance protection is becoming a preferred practice among regulators.

Onedegree’s partnership with Hkbitex isn’t the first instance of such cooperation. The partnership between Onedegree and Hkbitex is not the first. In fact, Gibraltar Blockchain Exchange had an insurance plan to protect its digital assets from Callaghan Insurance. Bitgo , a crypto wallet service provider, secured a $100,000,000 policy through Lloyd’s in order to cover any crypto assets it has. New York Digital Investment Group announced its plan to create cryptocurrency-powered products for the global insurance market.