Even with the crash in the price of bitcoin and other cryptoassets from $20,000 down to the $6K region, digital assets remain highly valuable investments and cryptocurrency exchanges, crypto “whales” and even firms offering virtual currency custodial services are prime targets of hackers.
Amidst that backdrop, Kingdom Trust crypto custodian has made Lloyd’s its insurance partner, according to a Reuters report on August 28, 2018.
Kingdom Trust Gets Fully Insured
Kingdom Trust, a leading digital assets custodian, serving over 100,000 clients with more than $12 billion in assets under custody, has secured insurance coverage through Lloyd’s of London, to cushion the adverse effects of any unforeseen circumstances.
According to Reuters, the firm has been working hard to get its business insured since its launch eight years ago but intensified its effort towards the goal in 2017 when the price of bitcoin and other digital assets experienced exponential increase.
The Chief Executive Officer of Kingdom Trust, Matt Jennings reiterated that:
“From the very beginning, we saw insurance as a key factor to bring institutional investors into the marketplace.”
At a time when most heavyweight insurance firms are still wary of working with firms in the cryptospace, the Kingdom Trust move represents a huge success for the entire cryptocurrency ecosystem, as a vast array of insurers shy from covering cryptocurrency businesses due to the nascent and seemingly volatile nature of the crypto verse.
The Kingdom Trust Advantage
Unlike some crypto exchanges that store a large chunk of digital assets in hot wallets ( cryptocurrency wallets with internet access), for smooth movement of funds, Kingdom Trust utilizes only highly secure cold wallets also known as offline wallets and this key feature has made it “receive drastic discount” on its insurance package with Lloyd’s.
As stated on its website, Kingdom Trust, is a qualified custodian regulated by the South Dakota Division of Banking, offering cryptocurrency custodial services to individuals, broker-dealers and other investment platforms.
In July 2018, reports emerged that Kingdom Trust had added support for privacy-centric altcoin, ZCash (ZEC) and Stellar Lumens (XLM), increasing the list of digital assets supported by the firm to 9, including bitcoin (BTC), bitcoin cash(BCH), ethereum(ETH), litecoin(LTC) and others.
It’s worth noting that the interest of institutional investors in the blockchain and virtual currency ecosystem is building up with each passing day.
On July 31, 2018, Northern Trust Corporation, a 129-year-old investment management firm announced interest to start offering crypto custodial services to clients.