KuCoin Partners with Onchain Custodian to Get its Funds Backed by Insurance
On April 20, 2020, KuCoin announced that it has completed a strategic cooperation with Onchain Custodian, Singapore's crypto asset custody platform. Onchain Custodian will offer custody service for the safekeeping of KuCoin crypto assets. The custodial funds will be backed with insurance arranged by Lockton, the world's largest private insurance brokerage company.
Recently, crypto assets have developed rapidly, and the total value of global crypto assets has reached 200 billion US dollars. However, compared with traditional financial markets, crypto assets are still in the primary stage of early infrastructure development.
Incidents such as exchange hacks and operation issues have caused investors' confidence in centralized exchanges to be greatly damaged. There are more than 28 exchange security incidents in 2019, of which more than 70% are stolen crypto assets; in February this year, FCoin entered an indefinite shutdown due to system problems, as high as 132 million US dollars will not be redeemed.
Through this partnership, KuCoin and Onchain Custodian will conduct custody cooperation in terms of fund security to ensure the security of the crypto asset market infrastructure from various aspects such as rules, processes, and technologies. KuCoin will continuously improve the security and compliance of crypto assets to create a safe trading environment for investors.
"Since its establishment in 2017, security has always been one of KuCoin’s top concerns. For this reason, we have joined forces with leading global security companies such as Chainalysis and global white hats to protect users' crypto assets," KuCoin Global CEO Johnny Lyu said. "After the cooperation with Onchain Custodian, we will further improve the security of user assets by implementing asset separation. Onchain Custodian's regular audit system and insurance company will provide an additional layer of protection for KuCoin users."
Founded in September 2017, KuCoin has grown into one of the most popular crypto exchanges. Now, KuCoin offers financial services including fiat-to-crypto, crypto-to-crypto, futures, staking, borrowing, token launch and more to its 5 million users across 207 countries and regions around the world. One out of four crypto holders worldwide are with KuCoin.
Onchain Custodian offers a global, standardised, resilient, insured and compliant custody service for the safekeeping of institutional crypto asset investments with incomparable user experience. In 2019, it passed NCC encryption and application audits, and Lockton arranged crime insurance for Onchain Custodian's crypto asset custody platform.