As crypto’s market cap pushes past $2 trillion and makes its way onto the balance sheets of many institutional investors and corporations, Hong Kong insurer OneDegree has announced a deal with Munich Re, one of the world’s largest reinsurers, to offer a new digital asset insurance product.
- OneInfinity, the digital asset insurance product, is targeted toward digital asset trading platforms, custodians, asset managers and technology providers.
- Munich Re will provide reinsurance, described as "insurance on insurance companies," that ensures an insurance company remains solvent even in the face of large payouts.
- Having insurance backed by reinsurance is the norm for major infrastructure providers of any asset class, but takes a unique twist with crypto given the intensity of cyberattacks.
- Becky Tam, OneDegree's general manager of digital assets, said her firm runs “risk-based analysis" that covers everything from cybersecurity and operations to personnel management.
- “It’s just like how if you are a heavy smoker and drinker you will struggle to buy medical insurance,” she said. “Not everyone that comes to us can get insurance.”
- The company doesn't insure decentralized finance (DeFi) projects yet, but hopes to do so after it studies the market more.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.