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.
The announcement today has made investors sit up, as it is seldom that mainstream financial institutions get involved with the volatile and unregulated crypto industry; large banks rarely, if ever, handle cryptocurrency.
Is Llyod’s Ahead of the Game?
The fact that Llyod’s is offering protection of Kingdom Trust’s assets is a sign of the growth of cryptocurrency business and concern for its volatility may just be outweighed by the potential of massive financial gains.
Perhaps Llyod’s for one is throwing caution to the wind, aiming to be the first to jump on what will no doubt be a lucrative new crypto-industry: cryptocurrency insurance.
For investors, 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
However, 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.
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.
What do you think? Is Lloyd’s doing something clever here? The institute has yet to comment on the matter itself, so it’s hardly screaming from the rooftops about it.
What does that say?
Featured Image: Google Images/ Lloyd’s of London