1. New Product from OneDegree and Dubai Insurance
2. What Does Custodial Risk Insurance Cover?
3. Market Impact and Future Expectations

The Central Bank of the United Arab Emirates (CBUAE) has approved a new product allowing an issuer to provide digital assets custodial risk insurance. Hong Kong-based insurance provider OneDegree and the UAE’s Dubai Insurance announced that they have started providing this service.

New Product from OneDegree and Dubai Insurance

OneDegree and Dubai Insurance have announced that they are starting to provide custodial risk insurance for digital assets to UAE customers under the brand 'OneInfinity.' They also mentioned that they received approval from the CBUAE.

What Does Custodial Risk Insurance Cover?

Custodial risk insurance is part of risk management strategies for custodians, exchanges, and other digital asset service providers. According to Robin Scott, the General Manager of OneDegree in the Middle East, this type of insurance allows crypto service providers to give their clients 'peace of mind against the risk of losing their assets.'

Market Impact and Future Expectations

Robin Scott pointed out that this insurance is similar to public deposit protection schemes in traditional banking and is required on many markets by regulators. The CBUAE's approval of this product means that for the first time, companies in the UAE can purchase this insurance domestically. OneDegree and Dubai Insurance have already begun providing custodial risk insurance to their UAE-based clients, expecting a high demand for the product as more companies obtain licenses.

The approval by the CBUAE to provide custodial risk insurance for digital assets represents an important step towards strengthening the protection of digital asset users in the region.