Digital asset minding company Kingdom Trust, announced today that it has secured insurance coverage through Lloyd’s of London. The insurance is to protect investor assets against theft, destruction, and loss.
Kingdom Trust is a qualified custodian of over 30 cryptocurrencies and holds assets valuing $12 Billion USD.
Mainstream Involvement
The announcement today has made investors sit up, as it is seldom that mainstream financial institutions have an involvement with the volatile and unregulated crypto industry; large banks rarely, if ever, handle cryptocurrency and well-renowned auditors tend to keep it ‘hush-hush’ if they ever get involved with companies in the space.
Is Llyod’s Ahead of the Game?
The fact that Llyod’s are offering protection of Kingdom Trust’s assets, is a sign that the sheer growth of cryptocurrency as a business may just be outweighing concern for their volatility.
Or perhaps, Llyod’s is simply throwing caution to the wind and wants to be the first to take advantage of what will no doubt be a lucrative new crypto-industry; cryptocurrency insurance.
Mainstream involvement is an important factor in this industry as it signals a greater adoption of the currency and an acceptance for a move away from traditional fiat currencies.
But There Is Danger
The reality is, that the crypto industry has seen billions of dollars worth of cryptocurrency lost through exchange hacks, corrupt deals, fraud, and even simple technical errors. It is an understandably difficult measure to insure.
Some losses have been so extensive that it results in the complete closure of an exchange, for example.
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Kingdom Trust
According to its website, Kingdom Trust is qualified under US financial regulations to hold assets on behalf of investment advisers, securities brokers, and retirement plans.
The company is regulated as a trust company by South Dakota and has been on the search for an insurer since 2010:
“From the very beginning, we saw insurance as a key factor to bring institutional investors into the marketplace”
It stores over 30 digital assets, including Bitcoin, Ethereum, Litecoin, Ripple, and ZCash.
Featured Image: Google Images/ Lloyd’s of London
