What’s Going On?
Insurance giant Lloyd’s of London has backed a US-based company that protects against the theft or loss of digital currency.
Why Does It Matter?
Reuters reported the agreement between Kingdom Trust and Lloyd’s represents the latest example of the insurance industry looking to cash in on cryptocurrency.
Kingdom Trust has offices in Kentucky and is regulated as a trust company by South Dakota. The company – which is reported to have $12bn in assets – had been looking for insurance since it launched, said CEO Matt Jennings.
Safe And Sound?
“Qualified custody by a regulated, insured financial institution is a top priority and critical hurdle for institutions to invest in the digital asset markets,” said Jennings. “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.”
Kingdom Trust has been offering custody of digital assets since 2017 and has recently increased its offerings, reported Crowfundinsider.
Kingdom Trust has released a white paper clarifying the concept of “qualified custody,” reported Global Banking and Finance Review. The white paper, written by Jennings, sets out to explain why the cryptocurrency marketplace benefits from the work of qualified custodians.