Kingdom Trust, a U.S.-based crypto custodial platform is now being insured by Lloyd’s of London. The crypto storage company currently holds 30 different virtual currencies including Bitcoin (BTC-USD), Bitcoin Cash (BCH-USD), and Ethereum (ETH-USD), valued at $12 billion.
Kingdom Trust offers storage services for both the virtual currency as well as for alternative assets. It serves institutional investors and retail individual investors. The storage platform is claimed to be the first regulated company to provide qualified storage for cryptocurrency investments. Furthermore, it has a team of registered investment advisors to guide its clients and boasts several investment networks.
Insuring its reserves
The firm announced that Lloyd’s of London will insure its reserves. Kingdom Trust has been planning to insure its platform for a while now, in a bid to attract more institutional investors. It has introduced the insurance coverage so as to safeguard investors against loss of assets via destruction or theft.
Kingdom Trust’s CEO, Matt Jennings stated that “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.”
Lloyd’s of London is a U.K based insurance company that was launched in 1686. It currently operates in more than 200 countries across the world. Between 2011 to 2015, the firm is said to have settled claims totaling to $87 billion. Lloyd’s operated 56 managing agencies and 85 syndicates as of last year.
Jennings, however, did not reveal the insurer that underwrote his firm’s coverage via Lloyd’s marketplace. Although he confirmed that they got a significant discount, the CEO did not disclose how much the policy cost. Jennings attributed the huge discount to the platform’s cold storage technology which stores tokens offline.
Kingdom Trust states that it strictly complies with Securities and Exchanges Commission regulations. It is mandated to hold storage of assets legally, on behalf of retirement plans, investment advisors, and securities brokers.
While most financial institutions avoid cryptocurrencies, Lloyd’s insurance coverage will help boost confidence towards the sector.