As we have mentioned in the past, blockchain and cryptocurrency are already affecting our lives in many ways, whether we are aware of it or not. More industries are adopting the technologies and, day by day, they are becoming more mainstream. While we may not be 100% aware of all the areas where crypto and blockchain are becoming prevalent, one which we are aware of is in the world of insurance. Insurance companies are beginning to offer their services for the protection of cryptocurrency. In fact, Lloyd’s of London announced on Tuesday, August 28th that they will be offering crypto insurance.
For their first endeavor in crypto insurance, Lloyd’s will be working with Kingdom Trust. Kingdom Trust is a company which stores crypto on behalf of investors. Furthermore, Kingdom Trust is a qualified custodian of around 30 cryptocurrencies and is looking to gain more security for their crypto assets with the help of Lloyd’s underwriters. They protect private keys of crypto troves with security to the standards of regulated financial institutions.
Lloyd’s of London & Kingdom Trust
If you know anything about either of the above companies, you know that this joining of forces is not small. Lloyd’s of London has been in operation for over 330 years. They are set to become the world’s leading market for specialized insurance. Put simply, Lloyd’s is not a small-player in insurance testing out the crypto waters. This is big. If an insurance-giant like Lloyd’s sees value in exploring crypto insurance, we are confident that others in the industry will follow.
Kingdom Trust is no small fish, either. They hold $12 billion in assets and have been in the business since near the beginning of crypto in 2010. In fact, they have been seeking out an insurance partnership such as this since their launch. Though, their search became more active within the last year.
Crypto Insurance in the Mainstream
Cryptocurrency is still subject to polarized views. Therefore, many insurance companies who have adjusted to include the digital assets in the past have opted to keep the decision quiet. Advertising involvement with cryptocurrency is risky in some industries, especially more old-fashioned industries such as insurance. Though, news of the Lloyd’s and Kingdom Trust partnership is out and may have a significant impact on cryptocurrency. Gaining insurance coverage will give Kingdom Trust an advantage amongst investors who are looking to store their crypto securely. Moreover, it may give dubious crypto investors more incentive to buy if they are aware of the secure storage possibilities. Additionally, if long-standing, reputable companies such as Lloyd’s of London are implying crypto assets are valid, valuable, and worth insuring trough their involvement, this will increase crypto’s accountability to the public.