The deal dictates that the insurance coverage will be issued by HARTi.
HARTi, a Japanese-based non-fungible token (NFT) platform, has recently announced that it joined forces with a Tokyo-headquartered insurance firm Mitsui Sumitomo to launch insurance for NFT transactions carried on an invite-only marketplace run by HARTi.
According to the official announcement issued on July 26th, as part of the deal, both parties will work shoulder to shoulder in order to build Japan’s first insurance policy dedicated to NFT art.
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The official report read that owners who will insure their NFTs will be able to receive compensation from HARTi up to a maximum value of 500,000 yen, estimated at $3.661, if their digital assets get stolen through phishing or a wallet hack.
Yuya Yoshida, CEO of HARTi, commented on the initiative and mentioned that the new policy, which will provide more safety, will pave the way for Japan’s major brands and commercial facilities to enter the NFT world. He added:
"Existing major companies will continue to enter the market from now to 2023. We hope that this will help to guarantee the safety of the domestic NFT distribution market."
Nonetheless, it’s hardly surprising that companies are cautious to enter the digital asset ecosystem, as numerous social media accounts are getting hacked every year. For instance, back in June, two of Yuga Lab’s NFT offerings were hacked and the investors managed to lose 200 Ethereum (ETH) worth of NFTs, estimated at $360k.
In fact, HARTi and Mitsui Sumitomo aren't the only Japanese-based crypto-driven organizations that are delving into the NFTs space. For instance, earlier this year, investment bank Nomura stated that it would be launching a new extension concentrating on NFTs, DeFi, and crypto.