OneDegree received an undisclosed investment from an insurance company in Dubai, which has partnered with a startup in Hong Kong to help it expand in the United Arab Emirates and beyond. The company was founded seven years ago and is considered one of the successful startups in the virtual insurance sector in Hong Kong. The company announced on Friday that it received an undisclosed investment from the insurance company in Dubai. This agreement comes against the backdrop of a partnership with the Dubai insurance company to help the company expand into the digital asset insurance sector in the United Arab Emirates.
Investment in Digital Asset Insurance
Investments in digital asset insurance represent an important part of the company’s strategy to expand in Dubai. The company aims to provide digital asset insurance products for businesses seeking licenses to conduct cryptocurrency-related operations in Dubai. According to the new regulatory framework for cryptocurrencies in Dubai that began to take effect in the first half of the year, those obtaining licenses must be insured to protect user funds. Several major players in the cryptocurrency industry have established branches in Dubai, including Binance for billionaire Changpeng Zhao, Crypto.com, and OKX.
Expanding Business in the United Arab Emirates
The company’s expansion into the United Arab Emirates is part of the Gulf state’s strategy to attract businesses with its crypto-friendly policies. This move comes as the Hong Kong government seeks to follow China in deepening trade ties with the Middle East amidst tensions between the United States and China. The number of clients for the company’s digital asset insurance service is expected to exceed 100 by the end of 2024, and it is estimated that digital asset insurance will account for about half of the company’s total business next year, compared to the current figure of 30%.
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