OneDegree and Dubai Insurance Company have received approval from the Central Bank of the UAE to offer digital asset custodial risk insurance.

Following this approval, both companies have begun providing custodial risk coverage to digital asset firms in the UAE.

Custodial risk insurance protects against threats such as third-party hacks, internal fraud, and damage to digital asset storage.

It is also required by many regulators globally, including the UAE’s Virtual Assets Regulatory Authority (VARA), which mandates this coverage along with professional indemnity and directors & officers insurance.

With the introduction of custodial risk insurance under the “OneInfinity” brand, they aim to provide comprehensive insurance services to digital asset companies in the region.

According to a statement by OneDegree, this is the first time such insurance will be directly available in the UAE.

The two companies, which announced their partnership last year, have been supporting digital asset businesses with insurance solutions.

Robin Scott, General Manager of Middle East for OneDegree, said,

“UAE has only strengthened its position as a digital asset hub since our market entry last year. There are hundreds of companies setting up across the Emirates and looking to obtain key licences.

For this they need strong, tailored insurance policies. It’s fantastic that we are now able to offer the full suite of OneInfinity digital asset products to these inspiring companies.”

Abdellatif Abuqurah, CEO of Dubai Insurance, added,

“We are thrilled to work with OneDegree on this important development in the UAE. Dubai Insurance is committed to bringing the most innovative insurance products to the UAE.

Custodial risk insurance is something brand new to the market but that satisfies an urgent demand as UAE cements its position as a global leader in digital assets.”