Stablecoin Cover Launch By BDIC HK, Product Called 'StableCover Pro'

The Blockchain Deposit Insurance Corporation (BDIC HK Ltd) has introduced StableCover Pro, an insurance product designed to provide risk coverage for compliant stablecoins, according to PRNewswire. BDIC announced the release of their new product, which looks to support Fortune 500 clients and financial institutions with stablecoin protection and risk mitigation.

For active stakeholders pursuing stablecoin treasury, transfers and savings, this adds better coverage for potential losses. The company is gearing up for a more engaged stablecoin agenda from clients, especially following the SEC's support for stablecoins to be considered as 'cash-equivalents' under accounting for balance sheets. Starting off with deposit insurance for popular tokens and wallets like Ledger and Trezor, the company has now partnered up with reputable exchanges and policy underwriters, namely popular insurance group, Lloyd's of London.

MD Paul Hohli expressed that:

"The SEC's recognition of compliant stablecoins as cash equivalents is a watershed moment in financial regulation for the US and the globe. It allows institutions, public and private, to hold digital assets via stablecoins with accounting legitimacy, which is great. However that doesn't eliminate risk. BDIC's goal in delivery of StableCover Pro is to provide the same confidence and operational protection institutions expect when holding fiat or sovereign debt, now applied to digital dollars. This will enhance adoption for corporate balance sheets."

The product primarily addresses protection on reserve failure, issuer insolvency, redemption guarantee, delay safeguards, accounting changes, custody faults and smart contract issues. There are other add-ons and premiums considering clauses for market disruptions and onchain security vulnerabilities. BDIC is expanding its international presence, with operations planned in the Caribbean and collaborations with sovereign funds, positioning itself as a leader in digital asset insurance infrastructure.

Note: This is intended for informational purposes only and does not in any way constitute or solicit financial, professional, or legal advice. Readers should conduct due diligence at all times.

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Source(s): https://www.prnewswire.com/news-releases/bdic-hk-ltd-launches-stablecover-pro-to-provide-risk-coverage-for-institutional-stablecoin-holdings-302534436.html