Lloyd’s Of London Insures Kingdom Trust’s Custody Platform For Cryptocurrencybr>
Lloyd’s of London is the oldest continuously active insurance marketplace in the world. Unlike most of its competitors in the industry, it is not an insurance company. Rather, Lloyd’s is a corporate body governed by the Lloyd’s Act 1871 and subsequent Acts of Parliament and operates as a partially-mutualized marketplace within which multiple financial backers, grouped in syndicates, come together to pool and spread risk. In 2017, there were 85 syndicates managed by 56 managing agencies that collectively wrote £33.6 billion ($43.2B USD) of gross premiums on business placed by 287 approved brokers.
Kingdom Trust is a state-regulated public trust company. For nearly a decade, the firm has assisted clients with regulatory compliance by serving as a qualified custodian and specializing in a variety of asset classes. The firm claims to be the first regulated financial institution to offer qualified custody for digital asset investments. It provides custody services for over 30 different assets, including bitcoin, Bitcoin Cash, Bitcoin Gold, ethereum, Ethereum Classic, Litecoin, Ripple, ZCash and Stellar Lumens.
Kingdom Trust is now enhancing its custody services with insurance cover for theft and loss due to natural disaster, courtesy of underwriters in the Lloyd’s market.
“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 Matt Jennings, CEO of Kingdom Trust. “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 safe-keeping solution tailored to meet the challenges of institutional finance.”
Jennings declined to comment on the identity of the insurer that underwrote Kingdom Trust’s coverage through the Lloyd’s marketplace or the policy’s cost and specific terms. But he said his company received a “drastic discount” because of its technology, a type of “cold storage,” in which cryptocurrencies are stored offline.
Jerry Pluard, president of Illinois-based Safe Deposit Box Insurance, the broker who arranged the Kingdom Trust’s cover, revealed that about 10 syndicates in Lloyd’s have indicated a willingness and are somewhat active in evaluating crypto exposures.
“Of those 10, I would say there are five that have the level of expertise that allows them to be comfortable enough to do the analysis and underwriting of the risk, and then the other five will follow on with those leads in writing exposure,” Pluard said.