Digital asset minding company Kingdom Trust, announced today that it has secured insurance coverage through Lloyd’s of London. The insurance is to protect investor assets against theft, destruction, and loss.
Kingdom Trust is a qualified custodian of over 30 cryptocurrencies and holds assets valuing $12 Billion USD.
Mainstream Involvement
The announcement today has made investors sit up, as it is seldom that mainstream financial institutions get involved with the volatile and unregulated crypto industry; large banks rarely, if ever, handle cryptocurrency.
Is Llyod’s Ahead of the Game?
The fact that Llyod’s are offering protection of Kingdom Trust’s assets, is a sign of the growth of cryptocurrency business and concern for its volatility may just be outweighed by the potential of massive financial gains.
Perhaps Llyod’s for one is throwing caution to the wind, aiming to be the first to jump on what will no doubt be, a lucrative new crypto-industry; cryptocurrency insurance.
For investors, mainstream involvement is an important factor in this industry as it signals a greater adoption of the currency and an acceptance for a move away from traditional fiat currencies.
But There Is Danger
However, the reality is that the crypto industry has seen billions of dollars worth of cryptocurrency lost through exchange hacks, corrupt deals, fraud, and even simple technical errors. It is an understandably difficult measure to insure.
Some losses have been so extensive that it results in the complete closure of an exchange, for example.