It has become known that Kingdom Trust, which holds more than 30 types of cryptocurrencies and tokens for investors, has obtained insurance coverage through Lloyd's of London to protect these assets from theft and destruction. Kingdom Trust is known to be a certified custodian, which means it holds private keys for those types of cryptocurrencies that are considered acceptable by regulated financial institutions.
Matt Jennings, CEO of Kingdom Trust, said in a statement: “We serve both institutional and individual investors with appropriate custodial services, giving our clients the ability to comply with their regulators with clear and transparent reporting.”
It appears that the ultra-conservative world of insurance is gradually becoming more interested in providing coverage for digital assets that are properly held. AIG, XL Catlin, Chubb and Mitsui Sumitomo Insurance were mentioned as such companies in American publications, but at the moment the companies prefer not to advertise this interest.
Lloyd's is also behaving very carefully. Lloyd's Corporation, which consists of groups of syndicates that share risk in the market, declined to comment on whether the coverage includes theft insurance and declined to name the syndicates that provide the coverage.
The broker that provided coverage to Kingdom Trust, Safe Deposit Box Insurance Coverage (SDBIC), said the caution stemmed from the fact that there was still uncertainty in the market about some types of insurance. assets.
Indeed, Lloyd issued a directive to all of its syndicates last month, warning them to exercise caution when dealing with cryptocurrency assets and to ensure that managing agents have the right understanding and understanding of the risks.
However, cryptocurrency insurance is on the horizon, said Jerry Pluard, president of SDBIC. “About 10 Lloyd's syndicates have expressed a willingness to assess cryptocurrency risks, and some are already doing so, and among them there are companies that have sufficient level of knowledge to analyze and underwrite such risks.”
Kingdom Trust has gained the confidence of underwriters through a combination of new technology and time-tested security protocols, including proof of reserve, daily audits, external controls, a transparent list of addresses, a multi-site storage program for disaster recovery and employees, undergoing regular checks..
Jennings believes that Kingdom Trust receiving underwriting from Lloyd's was a win not only for the company, but for the industry as a whole, and the demonstration of a reliable storage system will begin to reduce costs for everyone.
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