Blockchain Legal Resource

On August 28, 2018, as reported in Business Insurance, Lloyd’s of London underwriters have agreed to insure digital currency storage company, Kingdom Trust Co., against theft and destruction of cryptocurrency assets. The cover comes after almost a decade-long search by Kingdom Trust for insurance to cover its cryptoassets. According to Business Insurance, Kingdom Trust sees the availability of insurance as a key factor in bringing institutional investors into the marketplace by dispelling concerns about lack of traditional safeguards in the emerging cryptoasset space.

Kingdom Trust provides offline, or “cold,” storage for a number of better-known digital assets, including bitcoin, ethereum, litecoin, ripple and ZCash. Offline storage is believed to be safer and thus more suitable for insurance than so-called “hot storage,” where digital coins are maintained online where they are more accessible to hackers.