The Central Bank of the United Arab Emirates (CBUAE) has accepted a new custodial risk insurance product. This is a big step forward for digital asset companies in the UAE. This insurance, which comes from OneDegree in Hong Kong and Dubai Insurance in the UAE, will now be sold under the name “OneInfinity.”
Custodial risk insurance is a very important way to protect exchanges, custodians, asset managers, and other people who work with digital assets from losing money. It includes risks like hacking, theft within the company, and damage to storage systems. With this tool, businesses can protect their clients’ digital assets, giving them much-needed peace of mind.
Robin Scott, who is the General Manager of OneDegree for the Middle East, said that this insurance product is like deposit security plans used by banks but for Web3. It helps clients make sure they don’t lose access to their money because of something out of their control. Scott says that authorities all over the world, including those in the UAE, need this kind of insurance to protect consumers and keep trust in the digital asset space.
Companies in the UAE can now buy custodial risk insurance for the first time since the CBUAE gave its approval. We think that the demand for the product will go up as more companies try to get rights to work in the UAE’s growing digital asset market.
OneDegree and Dubai Insurance have already started giving this insurance to their clients in the UAE. They expect a lot of people to buy it as the area continues to become a major global hub for digital assets. This protection is seen by experts as an important way to protect the safety and long-term use of digital asset sites in the UAE.
