As announced On Tuesday, Japanese NFT platform HARTi and insurance group Mitsui Sumitomo (三井住友海上) will release a non-fungible token, or NFT, to insure all digital artworks displayed on the HARTi app. Insurance will be included with NFT products listed by sellers free of charge, and HARTi will be responsible for premium payments.

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Under this scheme, Mitsui Sumitomo will compensate holders of insured NFTs if their digital assets are compromised by unauthorized third party access (for example, through phishing, theft, or wallet hacking) or are eavesdropped or disrupted during transmission. In such cases, the policy will compensate the NFT owner based on the show price of each item, up to a maximum of 500,000 yen ($3,661). Both parties look forward to expanding their cooperation in NFT-related risk mitigation and will provide policies with higher compensation limits in the future.

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Regarding development, Yuya Yoshida, founder and CEO of HARTi, said:

“The topic of security is paramount in encouraging major Japanese companies to enter the NFT, including department stores, commercial properties and big brands. Therefore, we hope that this new service will play a role in the security of domestic secondary NFT. market.”

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Yoshida continued, “Given the importance of insurance for the robust development of the domestic secondary NFT market, Mitsui Sumitomo Insurance developed the policy from scratch, making it the first case in Japan.” Other Japanese corporate giants venturing into the crypto and NFT market include investment bank Nomura and video game publisher Square Enix.