Lloyd's of London Ventures into Cryptocurrency Insurance

Lloyd's of London has entered into an agreement with custodial firm Kingdom Trust to offer cryptocurrency insurance services in a move that further amps institutional entry in the digital asset ecosystem, according to a press release.

Founded in 2010, Kingdom Trust enjoys a clientele of more than 100,000 customers and handles $12 billion in assets.

The custodian service quickly grew to encompass digital asset offerings and provides custody for 30 different cryptocurrencies in both retirement and current accounts.

Kingdom Trust was acquired by cryptocurrency security startup BitGo earlier this year for an undisclosed amount.

Adding legitimacy to cryptocurrency adoption and investments, Lloyd's was founded in 1686 and is among the most prominent insurance firms in the world.

Now, with cryptocurrency coverage for digital asset investors, clients are insured against crypto theft and asset destruction.

Speaking about the partnership to Reuters, Jennings kept the identity of insurance underwriters private, including the contract cost and policy terms.

Insurance heavyweights like AIG, Allianz, Chubb and XL have also expressed interest in offering cryptocurrency insurance services to protect businesses and investors in the digital asset ecosystem.

Aon, a London-based insurance firm, claims to handle over 50 percent of the cryptocurrency investment market and is seeking additional protection for such clients.

With the advent of institutional investments in the cryptocurrency market, a robust crypto insurance market is not only required but instrumental to the success of the rising asset class.