OneDegree entered the crypto custody service and became the first-ever crypto insurer in the crypto industry to provide custody.
Crypto adoption is at a tremendous level and also there are many associated risks. If we talk about the biggest risk, then it is a hacking attack. In the past, almost all crypto exchanges faced hacking attacks. If we talk about the present then we can see hacking attacks mostly in the DeFi platforms.
In this year, many attacks on the DeFi projects took place. In some cases, hackers returned funds but in some cases not. So in these situations, there is a need for an insurance system for the crypto firms to make sure that in any situation of hacking, they can give the funds back to their users. And also insurance service is needed by new financial institutions, which want to enter in crypto-based services.
By keeping this need in consideration, OneDegree firm established a partnership with the Hong Kong Bitcoin Exchange (HKbitEX) to provide crypto custody services.
About this new initiative, OneDegree announced on 11 November and claimed that they became the first-ever crypto insurer firm in Asia. And also the first insurance is insured $100 million in digital assets under HKbitEX’s custody.
OneDegree asserted that the insurance custody service will help the crypto firms and players to remain confident over their crypto business against their loss by any unfair means of activities.
Ken Lo – CO-founder at HKbitEX- stated that they are looking for some additional institutional crypto investment and there is a need for confidence for the institutions to get into crypto. Further, he added
“With over 1,800 licensed asset managers, Hong Kong is home to over US$3 trillion in assets under management. We want to help asset managers enter this market in ways that enable them to also fulfil their fiduciary duties to their end investors.”