Lloyd’s of London Insures Kingdom Trust Against Cryptocurrency Theft

British insurance giant Lloyd’s of London is expanding its operations into the cryptocurrency space on growing demand for insurance coverage. The century-old insurance marketplace has confirmed insuring Kingdom Trust against cryptocurrency theft.

It is still unclear the cost or terms of the insurance policy that Kingdom Trust has taken with Lloyd’s of London. However, the company acknowledges that it did receive a significant discount on the cover, given its custodial technology and type of cold storage it offers as a way of fending off attackers.

Kingdom Trust is a U.S based custodial that provides cryptocurrency storage services for investors. Given that, the company serves institutional and individual investors, seeking insurance cover is inevitable at a time when hacking incidence leading to loss of millions of crypto holdings have become increasingly common.

Securing insurance cover also allows the company to adhere to compliance requirements as set out by the Securities and Exchange Commission.

"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,” said CEO Matt Jennings.

Kingdom Trust became the first regulated financial institution service provider to offer digital asset investments. It currently provides storage services for more than 30 digital assets including Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) and Zcash (ZEC).

Going after insurance cover for digital assets is a big step which underlines the company’s commitment to addressing the needs of institutional investors looking to protect their interest in the burgeoning marketplace.

The company currently serves over 100,000 customers, expected to increase as people take note of the layer of cover offered by Lloyd’s of London. Kingdom of Trust boasts of over $12 billion worth assets under its custody.

Founded in 1686, Lloyd’s of London offers insurance coverage in over 200 countries. The insurance company won’t be the first and last company to venture into the cryptocurrency space in pursuit of coverage opportunities.

The likes of AIG Allianz, as well as XL Group, have also started offering insurance coverage options as a way of protecting business handling crypto products. AoN one of the largest insurance company also continues to experience an increase in demand for crypto-specific protection products.