Multi-line insurer OneDegree Hong Kong has partnered with digital asset exchange HKbitEX to provide offer digital assets protection for the latter’s ON1ON custody platform
With US$100 million in digital assets under management covered, OneDegree claims it is the first Asia-headquartered insurer to provide insurance for digital assets.
According to OneDegree, market interest in digital assets is growing fast. Providing insurance and risk management services for digital assets will bolster investor confidence and support market development, the company said. By providing cover for losses from damage, hacking and theft, OneDegree seeks to fortify HKbitEX’s position as a safe and secure platform for institutional investors to manage their digital assets.
The coverage applies to physical damage to wallets caused by natural events, cybersecurity threats such as external hacking or malware attacks, and deliberate and dishonest acts by employees.
“We have witnessed a very strong inbound demand for insurance to protect against threats to digital assets,” said Alvin Kwock, co-founder of OneDegree. “Our unparalleled expertise in insurance, technology and cybersecurity has allowed us to develop more viable risk management solutions in this rapidly evolving industry than traditional insurance providers. We are the first insurer headquartered in Asia to insure the digital asset industry. With our new product, we are delighted to help digital asset platforms like HKbitEX to stay competitive by providing peace of mind to investors that the platform will have the financial capability to reimburse losses resulting from an insured event.”
OneDegree said it is developing more technology to provide protection to participants of the digital assets market. These, coupled with its in-house cybersecurity platform Cymetrics, will help clients understand their cyber exposure and manage their cyber risks.
“I am confident the additional and reliable protection OneDegree Hong Kong offers can enhance the experience we are bringing to investors in the emerging digital asset space,” said Ken Lo, co-founder of HKbitEX. “I also look forward to working further with OneDegree Hong Kong in our common endeavours to assemble key industry players in the form of a think-tank to drive knowledge exchange and development in digital assets.”