Category Archives: Kingdom trust

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Bitcoin Custodians with $12 Billion Assets Secures Lloyds Insurance

Lloyds of London, the world’s leading insurance market providing specialist insurance services to businesses in over 200 countries and territories, has moved into underwriting crypto with a new account through its business syndication.

UK underwriter Lloyds, which was established in 1765 when button maker John Taylor and iron dealer Samson Lloyd first set up a business together, has added another page to its long history through its connection with South Dakota registered Kingdom Trust, a company which provides customized and innovative digital currency custody solutions for institutional clients.

The trend is clearly changing with more insurers considering providing services to cover custodied digital assets, with AIG, XL Catlin, Chubb and Mitsui Sumitomo Insurance all looking at this insurance sector as cryptocurrency grows in stature and popularity.

Until now insurance companies have very much stood back from the industry and some have not disclosed whether they are actually covering institutional assets such as cryptocurrency, due to the risk of compromised client accounts due to fraud and technical errors. Despite such risks, the sector is opening up.

“Insurance for cryptocurrency storage will be a big opportunity,” said Christian Weishuber, a spokesman for Allianz, who offer individual coverage for digital-coin theft. “Digital assets are becoming more relevant, important and prevalent on the real economy and we are exploring product and coverage options in this area.”

Its reported that Kingdom Trust, who has USD 12 billion in assets, secured the account due to the company’s cold storage protocol with the client’s digital currency stored offline. The broker who secured the account, Illinois-based Safe Deposit Box Insurance Coverage (SDBIC), says that Kingdom Trust’s level of security earned them a “drastic discount”.

SDBIC president Jerry Pluard suggests that Lloyds are comfortable with the direction it is moving in with this account and that more syndicates are looking at crypto. He commented:

“About ten syndicates in Lloyds have indicated a willingness and are somewhat active in evaluating crypto exposures… Of those ten, 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.”

Kingdom trust reportedly stores 30 different digital assets including Bitcoin, Ethereum, Litecoin, Ripple and ZCash.

 

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BitGo Offers New Crypto Custodial Products for Financial Firms

BitGo has released a new suite of cryptocurrency custodial products aimed at Wall Street financial firms. It is claimed that 15% of Bitcoin transactions occur through BitGo’s wallet services, with BitGo software processing over USD 10 billion of cryptocurrency transactions per month. BitGo is seeking to attract USD 20 billion that it expects institutional investors to commit to cryptocurrency.

Institutional clients like hedge funds and stock brokerage firms require a custodian service that follows all of the laws and is properly regulated before they are willing to invest money. This is why BitGo acquired the Kingdom Trust Company as well as Kingdom Services earlier this year.

Kingdom Trust is a licensed qualified custodian regulated by the South Dakota Division of Banking which has over 100,000 clients with over USD 12 billion of assets. Using Kingdom Trust’s infrastructure, BitGo will offer legal and trustworthy custodianship of cryptocurrency assets, giving big investors and firms peace of mind when deciding to add cryptocurrency to their portfolio. The acquisition of Kingdom Trust still has to be approved by government regulators, but that hasn’t stopped BitGo from launching services managed by Kingdom Trust.

Having a trustworthy custodian makes cryptocurrency investment easier for investors, since they don’t have to deal with any of the technical details. They simply send their money to BitGo with an order for which cryptocurrencies they want, and BitGo takes care of buying the cryptocurrency on an exchange and securely storing it in a wallet.

Currently, BitGo supports 20 different cryptocurrencies and is looking to add even more so that it eventually provides custodial services for every cryptocurrency it deems worth investing in. BitGo offers three tiers of service: qualified custody where cryptocurrency is stored and secured with Kingdom Trust, institutional custody where clients manage BitGo wallets, and completely self-managed custody. This range of services provides solutions from consumer to institutional needs.

The value of all cryptocurrencies combined is worth just over USD 400 billion as of this writing, and has been growing by orders of magnitudes the past several years. BitGo’s custodial services open up cryptocurrency to big investors like never before and will provide a conduit for money to pour into the cryptocurrency market from Wall Street. Trillions of dollars are invested in the stock market, and BitGo’s services will facilitate some of that money to be diverted into cryptocurrency.

 

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