EQIBank, which launched in October last year, was one of the first licensed and regulated offshore banks to offer support for both traditional and alternative assets. It provides financial services, including lending, exchange, and wealth management to corporate clients and high-net-worth individuals in 180 countries around the world.
Kentucky-based Kingdom Trust launched in 2010 and was one of the first companies to provide custody solutions for alternative assets. It has grown to become a market leader in the alternative asset custody industry, with insurance provided by financial powerhouse Lloyd’s of London.
“Strong, insured custody”
The new relationship means EQIBank clients now have access to a robust, multi-layer custody storage solution that makes use of the most advanced technologies to ensure complete security of client assets. The custody solution ensures that all digital assets are segregated and kept in highly-secure cold storage vaults that benefit from strict monitoring and auditing policies.
EQIBank CEO Jason Blick spoke of the new development at the official launch: “Our job is to give EQIBank’s clients the ability to protect their future. We think about the things they need before they know they need them. Strong, insured custody is one of those things.”
Kingdom Trust is a highly respected and well-trusted custody solution provider which enjoys excellent regulation from the South Dakota Division of Banking. South Dakota has long been known as one of the most innovative U.S. states for asset storage and insurance law, with three times higher asset storage than New York State. It allows companies to conduct business on a national level due to the South Dakota Trust Charter and supports advanced technological activities in the alternative asset market. Earlier this month, newly-formed qualified custodian provider Anchorage Trust Company registered its services in the state for the provision of services to SEC-registered clients.
“We’re proud of our growing operational and technology relationships, of which Kingdom Trust is a welcomed addition,” stated Mr. Blick. “We are constantly seeking ways to improve our services to clients, and a secure and transparent approach to digital asset exposure has been something funds and asset managers have demanded.”
Growing demand for alternative asset custody
The market for the provision of alternative asset custody solutions has exploded in 2019, with companies like Calfornia-based BitGo and Coinbase expanding the scope of their custody services. Wall Street giant Fidelity Investments this year added digital asset custody to its services, and newly launched digital exchange Bakkt recently acquired the Digital Asset Custody Company (DACC).
As one of the largest solutions providers in the industry, Kingdom Trust takes the secure storage of alternative assets very seriously. The company tends to the needs of over 100,000 clients around the world with a combined value of $US12 billion worth of investments. The new strategic relationship with EQIBank ensures clients for up to $US20 million for any single occurrence, and in the annual aggregate the EQIBank/Kingdom Trust Insurance is provided through two leading Lloyd’s of London syndicates, including loss as a result of theft, theft by a third party and/or direct loss of assets held in cold storage.
“Kingdom Trust was built around my own personal aspiration to protect my assets. We are thrilled when innovators like EQIBank work with us to offer their clients the same surety,” said Matt Jennings, Co-founder and CEO of Kingdom Trust.