A major Asian insurance company has taken the risk of investing in Bitcoin (BTC) in an attempt to provide a model for other companies in the field.
Diversified insurer OneDegree announced Thursday that it has partnered with Hong Kong Bitcoin Exchange (HKbitEX) to secure the latter’s ON1ON depository platform. OneDegree claims to be the first Asian digital asset insurance provider to secure $100 million in digital assets under HKbitEX custodianship.
According to OneDegree, the demand for digital asset insurance is growing, and digital asset insurance and risk management will boost investor confidence and help the market grow.
Third party insurance covers physical damage to wallets due to natural events, cyber security risks such as remote hacking or malware attacks, and intentional or fraudulent employee actions.
After the announcement, Ken Lu, co-founder of HKbitEX, stated that he wanted more institutional investment in cryptocurrency. He completed:
With over 1,800 licensed asset managers, Hong Kong is home to over $3 trillion in total assets. We want to help asset managers enter this market in ways that also allow them to justify their confidence in their end investors. ”
The company said it is creating more technological solutions to help cryptocurrency market participants avoid risks. The company said that in addition to Cymetrics’ internal cybersecurity platform, the tools will help customers assess and manage their own Internet risks.
As reported, the Hong Kong Securities and Futures Commission is currently reviewing the rules governing virtual currency transactions, including the possibility for individuals to invest in crypto-related exchange-traded funds.
Hong Kong is one of the most important and famous financial centers in the world. This had a huge impact on the innovation of cryptocurrency. For example, the city-state has spawned some of the most popular and successful crypto companies to date, including crypto derivatives exchange FTX and digital asset platform Crypto.com.