The 23-year-old keeper made his debut for the Easter Road club in Sunday's 1-0 defeat to Dundee United and was listed as a trialist ahead of the final details of his move being completed yesterday.
It is the sixth time the former England under-20 internationalist has been farmed out by Hull, but with his contract at the KC Stadium due to expire next summer, Hibs head coach Alan Stubbs has already indicated he could be interested in a long-term agreement for the shot-stopper.
Meantime, Oxley, who made 43 appearances on loan at Oldham Athletic last season, is determined to hold down a regular starting berth and help Stubbs' new-look side bounce back to the Premiership.
Oxley said: "It's a massive club. I took to everything the manager said when I first came up. He was positive about the club and where he wants to take it. He has seen me play and he said to just come in and enjoy it.
"He wants us to put a smile back on the faces of people here. They've had a tough time over the last few seasons and he wants to change that. We just want to get the fans back buzzing about the place. Hopefully, if we can perform like we did on Sunday we'll be going the right way."
Oxley joined Hull in a £150,000 move from Rotherham United in August 2008, just a few months short of his 18th birthday, but has played barely three minutes for the Yorkshire club, as a late substitute in a 3-1 defeat to Sheffield Wednesday in January 2013.
However, with former Hibs manager Terry Butcher having released No.1 keeper Ben Williams as well as back-up stoppers Sean Murdoch and Paul Grant at the end of last season, the Sheffield-born player hopes to forget his Hull disappointments by entering a new chapter in his career in Edinburgh.
He added: "It's been frustrating for me at Hull City. I've been on the bench and I've had quite a few injuries. I've had a few loan spells and I need to be playing. I'm 23 now and it's an age where you can't be playing under-21 football or reserve football, you need to be playing first-team football.
"I had a taste of it last season and, coming here, hopefully I'll be playing every week if I do well. That would be another step in the right direction."
Another Stubbs recruit, Scott Allan, could have been a star in the English Premier League by now had things worked out differently following his move to West Brom, insists Scott Robertson.
But the Hibs midfielder is convinced his former Dundee United team-mate is now at the right place to nurture his talents and get his career back on track.
Allan controversially signed for West Brom in January 2012 after just nine top-team games on Tayside. However, shortly after he joined the Hawthorns club manager Roy Hodgson departed for the England job and, after four loan spells, Allan was released.
However, there is no doubt in Robertson's mind that the 22-year-old has all the attributes to fulfil his early potential under Stubbs.
Robertson, who suffered his own disappointing move south to Blackpool, said: "I played with Scott briefly at Dundee United. With the ball, he's an exceptional talent and I just feel that he's maybe not been nurtured down south as much as he could have been up here.
"It could have worked out the other way for him and he could be a Premier League star right now. It hasn't worked out like that. He took that chance, but I'm sure he would rather take that chance and regret it than regret not taking the chance, similar to myself."