Cryptocurrency
Crytocurrency storage firm Kingdom Trust obtains insurance through Lloyd’s via @Reuters
As reported by Reuters, “Kingdom Trust, a company that stores digital currency for investors, has secured insurance coverage through Lloyd’s of London SOLYD.UL to protect against theft and destruction of those assets, the company said on Tuesday. “The move by Kingdom Trust, which has $12 billion in assets, is the latest example of a once-reticent […]
As reported by Reuters, “Kingdom Trust, a company that stores digital currency for investors, has secured insurance coverage through Lloyd’s of London SOLYD.UL to protect against theft and destruction of those assets, the company said on Tuesday.
“The move by Kingdom Trust, which has $12 billion in assets, is the latest example of a once-reticent insurance industry stepping up to offer protection to companies that store cryptocurrency, a volatile and loosely regulated, but rapidly growing business.
“Kingdom Trust, which has offices in Kentucky and is regulated as a trust company by South Dakota, has been looking for insurance since it launched in 2010 but more actively pursued coverage during the past year, said Chief Executive Officer Matt Jennings.
“’From the very beginning we saw insurance as a key factor to bring institutional investors into the marketplace,’ Jennings said in an interview.
“A spokesman for Lloyd’s, the world’s largest insurance marketplace, declined to comment.
“The move comes as the nascent cryptocurrency industry looks to attract more mainstream investors, the majority of which have steered clear so far because of concerns about lack of traditional safeguards. Large custodian banks do not yet handle crypto assets, and brand-name auditors are seldom disclosed as being involved with companies in the space.”