Fidelity-Backed KNØX Launches Today With Full Insurance
KNØX, a crypto custody provider backed by Fidelity Investments, has been launched today. The company affirms that it can provide up to 100% insurance for its clients using a solution provided by Marsh. The co-founder of the company, Alex Daskalov, affirmed that the company can provide complete insurance to the assets of its customers, as reported by The Block Crypto.
The company, which is based in Canada, received over $6.2 million USD in investments recently from companies such as Fidelity Investments Canada, FJ Labs, iNovia, Ferst Capital and others. The seed round happened in June 2018 and the company has operated “silently” for around a year after that.
Marsh provides up to 100% insurance coverage of the assets, something that is pretty rare in the crypto industry. This is why, according to Daskalov, the company provides good custodial services that can take care of the assets and ensure their safety.
The CEO affirmed that full insurance is needed because partial insurance gives people the false impression that they are protected when they are not. For instance, if a company has insurance for $100 million USD and it has a total of $1 billion USD in assets, a customer with $100 million USD there is not 100% protected.
In fact, the customer is only 10% protected in case the company loses all of its money. This gives people a false sense of security, something that can backfire. KNØX wants to act differently and to really be able to really protect its customers.