- Onedegree will provide insurance to Hkbitex exchange
- Onedegree will cover assets worth $100 million
- Hkbitex co-founder wants institutional investors in the crypto exchange
Even though digital asset trading is one of the most lucrative methods of making money in the financial sector, it comes with some disadvantages. The disadvantages range from hacks to scams and other illicit activities that traders may not mitigate. This is why, Onedegree, a firm in Hong Kong, has announced that it will insure digital assets for users in the country. This move was announced as a prerequisite for its partnership with a crypto exchange in the country. With this, the firm hopes that potential investors can be convinced to enter the market and make profits.
Onedegree will cover assets up to $100 million
There are tons of insurance companies that provide these services on virtual assets across Hong Kong. Onedegree’s offer is mainly directed at the Hkbitex crypto exchange, covering assets up to $100 million. The teaming up of the two investments will help cover losses that customers incur either via theft or hack. In a report published by China morning post, Onedegree will become the first insurance company to provide an underwritten policy for digital assets across all Asia. This is although only a few companies across the world offer this.
The report also claims that the available coverage is said to be a little below $1 billion for every transaction. In a statement by the risk officer of the company, Becky Tam, the company will be open to offering the services to companies who intend to purchase them. However, she noted that the number of eligible companies would be very low. This means that Onedegree wants to open up its risks management program to more companies across all sectors.
Hkbitex co-founder wants institutional investors in the crypto sector
After the announcement, Bitcoin was said to have gone on a bullish run, with the digital asset touching a new all-time high in the process. With that and other assets’ performance, the total value of the crypto sector has reached $3 billion. The announcement also says that both companies will hope to seduce institutional investors with the mouth-watering offer.
According to Ken Lo, the co-founder of Hkbitex, the crypto sector in Hong Kong is faring well but needs the full participation of institutional investors. Crypto hack and scams have been a few of the issues that have continued to plague the crypto sector across the world. According to the head of the Aon branch in Asia, users of exchanges have been looking for ways to reduce the risk they are open to trading in the sector, and getting insurance should be a good start.
Before this partnership, there have been several crypto exchanges that have teamed up with insurance companies. Last year, Callaghan Insurance signed a partnership deal to provide insurance to assets on the Gibraltar Blockchain Exchange. Before then, it was Bitgo crypto exchange and Lloyd Insurance that signed an insurance deal.