KNØX Intros Custody Solution, An Insurance Program For Digital Assets

KNØX, an insured digital asset custody solution, on Tuesday launched a custody service for insurance institutions and fiduciaries.

The development will insure clients, like asset managers, asset providers, and exchanges, from losses due to digital asset theft and collusion, up to the full value of holdings.

“The application of sound risk management principles is important for the maturation of the digital asset space,” said KNØX CEO Alex Daskalov. “With the launch of our custodial offering, which insures up to 100% of the asset value held by customers, a key hurdle for institutional capital wishing to enter the asset class has been cleared.”

The KNØX insurance program was developed by Marsh, a leading insurance broker and risk adviser. The depth and breadth of the solution will help financial institutions further their exposure into the space, reducing unforeseen risks that can be a detriment to client portfolios.

You can see dozens of companies like KNØX looking to take over the fintech space at the Benzinga Global Fintech Awards in New York City on Nov. 19.

“A large amount of capital is sitting on the sidelines ready to be deployed over the coming years," Daskalov said. "The ability for fiduciaries to meet their obligations, including sufficiently capping their downside risks associated with potential for theft and loss of digital assets, is critical for the next wave of institutional participation.”

Overall, the development means that institutions ready to diversify into the digital asset space will be able, through KNØX, to achieve simplified governance and financial protection.