HashKey Hong Kong is set to offer insurance coverage for digital assets held on its platform, ensuring the protection of users' holdings.

This development comes following the signing of a memorandum of understanding with fintech firm OneDegree, according to a report from Coin Telegraph.

The insurance policy will extend its coverage to encompass both hot wallets and cold storage addresses, bolstering security measures for users. HashKey CEO Xiaoqi Weng emphasized the company's commitment to enhancing the overall infrastructure, both financially and technically, to provide customers with a more comprehensive safeguard for their digital assets. The goal is to further contribute to Hong Kong's burgeoning digital asset ecosystem.

OneDegree co-founder Yanlin Guo also highlighted the necessity of a robust framework that includes insurance to identify and mitigate potential risks in the world of cryptocurrencies.

Last month, HashKey achieved the distinction of becoming the first cryptocurrency exchange to receive regulatory approval from Hong Kong's Securities and Futures Commission to offer services to retail investors.

Elsewhere in the space, specialty insurer Canopius also revealed its own digital asset product, making it the first carrier on the Lloyd’s Asia platform to provide coverage locally for the custody of digital assets.

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