Kingdom Trust, a US firm that stores digital currency for investors, will have its custody platform insured by British insurance firm Lloyd's of London, according to an August 28 press release, making it the latest insurer to take advantage of the new crypto industry. Kingdom Trust, who serves more than 100,000 customers, has custody of $12 billion in assets. They also provide digital currency storage devices for over 30 different assets. Thanks to this agreement with Lloyd's, this will mark the first time a financial institution will offer custody for digital asset investment. Lloyd's of London, which was founded in 1686 and operates in over 200 countries, is reported to have paid claims amounting to £68 billion, or $87 billion, between the years of 2011 to 2016. Kingdom Trust is seeking to launch insurance coverage for digital currency. This will protect investors against theft and potential destruction of assets. The company's CEO, Matt Jennings, stated that the plan is crucial for institutions invsting in the crypto marketplace, not only as custody by a firm such as Jennings' is important for said institutions, but the added safekeeping of a proven firm like Lloyd's will ensure Kingdom Trust's clients that their assets will be protected. Jennings, during an interview with Reuters, declined to disclose the insurer underwriting his company's coverage through Lloyd's, nor did he disclose the terms or the cost of policy. Despite this, he noted that Kingdom Trust was given what Jennings called a ‘drastic discount’ because of its technology, which he describes as "cold storage", as it stores digital currency offline. This is the latest in a trend of insurers offering coverage options to crypto-based companies. 2018 was noted by Marsh & McLennan - who themselves have revealed that they had formed the first specialized team that will help broker policies for blockchain startups - as being "brisk" for insurers catering to the industry. These include companies such as AIG, Allianz, and the XL Group. Other companies, such as insurance broker Aon, who claims to occupy half of the entire crypto-insurance marketplace, are seeing increases in crypto-specific protections.
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