The United Kingdom insurance market giant Lloyd’s of London has brought it to public knowledge that the institution will be ensuring a crypto custody platform by the United States-based custodial firm Kingdom Trust, this was conveyed in the official press statement made on August 28.
A Firm Known for Its Reputation
The Lloyd’s of London, which was established in 1686, is a reputable British Insurance Firm whose good status has survived several centuries. The firm is active in over 200 countries around the world. Also, the firm has been reported to have paid claims in the amount of £68 billion ($87 billion) within the time frame of 2011 to 2016.
The U.S-based custodial firm, Kingdom Trust, is an institution with about 100,000 customer base and about $12 billion assets under custody. The “first” regulated financial institution is said to have offered a qualified charge for crypto asset investments. It is worthy to note that the Kingdom Trust firm provides virtual currency storage facilities for their customers in a variety of more than 30 different assets.
Kingdom Trust has deemed it fit to launch insurance coverage for the digital currency in order to protect investors against the imminent risk of theft and destruction of assets. This, to a large extent, is securing the future of virtual currency and making it less risky to have as an asset. The CEO of Kingdom Trust, Matt Jennings, while giving a comprehensive description of the initiative, stated that;
“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.”
However, the CEO of Kingdom Trust refused to reveal the identity of the insurer that underwrote the custodial company’s coverage through Lloyds’ marketplace, neither did he reveal the cost or the terms of the policy as well. He poignantly noted that the company “received a ‘drastic discount’ because of its technology, a type of ‘cold storage,’ in which digital coins are stored offline.”
Insurance Companies Moving Towards Cryptocurrency
It is getting apparent that Insurance companies are offering cover for crypto startups and even digital asset holders. It was reported last month that reputable insurers such as AIG, Allianz, Chubb and XL Group are increasingly offering coverage options to protect enterprises in the cryptocurrency world. Also, Aon which is a major insurance broker that claims to occupy 50 percent of the crypto-insurance market is reportedly seeing more specific protections at the service of the fast-growing industry of cryptocurrency.
According to Marsh & McLennan, it was speculated that the year 2018 has been full of liveliness and activities for the crypto-insurers, further stated that the formation of the first-ever dedicated team to brokering policies for blockchain startups was necessary and ingenious.