U.K. insurance market leader Lloyd’s of London will guarantee a crypto custody platform by the U.S.- based custodial firm Kingdom Trust, as per an official statement published August 28.
Established in 1686, Lloyd’s of London is a British insurance firm that is active in more than 200 nations. The organization allegedly paid claims in the amount of £68 billion ($87 billion) between 2011 and 2016.
Kingdom Trust, which serves more than 100,000 clients and has $12 billion in resources under authority, is the supposedly the “first” regulated financial institution to offer qualified custody for digital asset investments. Kingdom Trust gives digital currency storage services to more than 30 distinct resources.
The organization is currently launching insurance coverage for digital currency to protect investors from hacks, theft and destroying assets. Matt Jennings, CEO of Kingdom Trust, stated:
“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.”
In a meeting with Reuters, Jennings declined to reveal the insurer that guaranteed Kingdom Trust’s coverage through Lloyd’s marketplace or the cost or terms of the policy and rules. But he noticed that Kingdom Trust “received a ‘drastic discount’ because of its technology, a type of ‘cold storage,’ in which digital coins are stored offline.”
A month ago, Cointelegraph revealed insurers, for example, AIG, Allianz, Chubb, and XL Group are progressively offering coverage choices to secure organizations in the crypto space. Aon, a noteworthy insurance broker that professes to own 50 percent of the crypto-insurance market, is supposedly observing more crypto-specific securities taking into account the new business.
Marsh and McLennan said that 2018 has been “brisk” for crypto-insurers, uncovering that it framed its first-ever dedicated group to brokering policies for blockchain new companies.