In its bid to protect investors from the theft of assets, Kingdom Trust, a US-based custodial firm seeks to launch an insurance coverage for cryptocurrency.
According to a press release on August 28, Lloyd’s of London (better known as Lloyd’s), an insurance market leader in London will provide insurance for Kingdom Trust and their crypto assets.
Lloyd’s of London is a reputable insurance corporate body founded in 1686 and has its services spread across well over 200 countries. Between 2011 and 2016, the company was reported to have paid claims amounting to $87 billion. Kingdom Trust, on the other hand, boasts of over 100,000 customers with an asset value of $12 billion under custody. This recent move makes Kingdom Trust one of the first fully regulated financial bodies to offer legal custody for cryptocurrencies.
By launching this insurance coverage for digital currency, Kingdom trust, through Lloyds of London hopes to offer its future clients a reason to feel safe and ability to be versatile with their financial investments. The CEO of Kingdom Trust, Matt Jennings notes:
Qualified custody by a regulated, insured financial institution is a top priority and critical hurdle for institutions to invest in the digital asset markets. By adding another trusted specialist like Lloyd’s to our platform, we’re ensuring that current and future clients will have access to a highly-secure, complete safekeeping solution tailored to meet the challenges of institutional finance.
Speaking to Reuters in an exclusive interview, Jennings was upbeat about the new development but was hesitant to disclose the identity of the insurer that helped underwrite the coverage by Kingdom Trust through Lloyd’s. Although he was not willing to divulge much in terms of the policy’s cost or terms, he was quick to note that Kingdom trust enjoys a significant discount courtesy of its cold storage technology whereby coins are kept secure offline.
More to come?
This development comes hot on the heels of a report last month that insurers like Allianz, AIG, XL Group and Chubb are currently striving to offer coverage options to help cushion businesses involved in the crypto industry. According to AON, one of the most notable insurance brokers in the crypto space, more crypto-specific protections are bound to hit the market soon.