by Cindy Huynh
Kingdom Trust, a qualified custodian that specializes in unique custody solutions, announced it is now accepting Zcash (ZEC) and Stellar Lumens (XLM) to its list of acceptable cryptocurrency investments.
Cryptocurrency Provide Diversification Opportunities
Kingdom Trust is considered as one of the leading qualified custodians holding cryptocurrency investments. In addition to ZCash and Stellar Lumens, the qualified custodian also accepts 7 other digital currencies as investments. These include Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), and Ripple (XRP).
According to Kingdom Trust’s website, they have over $12 billion in assets under custody and service 100,000 clients. As individual and institutional investors move into the market, the company believes that they fulfil a large gap in the market concerning cryptocurrency custody solutions.
“Kingdom Trust is proud to now hold these two coins on our industry-leading platform,” said Matt Jennings, the CEO of Kingdom Trust. “As a qualified custodian, we take our role as solutions provider very seriously, and we are excited to add many more solutions like this in the near future.”
While cryptocurrencies are popular in the trading community, Kingdom Trust mentioned that individuals can hold cryptocurrencies inside a retirement account, which has been allowable since 2014. According to the 2014 IRS Notice, cryptocurrencies are assets seen as property when it comes to tax purposes that have “an equivalent value in real currency.”
Kingdom Trust also mentioned that their platform was one of the first companies to allow self-directed retirement accounts to hold cryptocurrency investments directly.
Cryptocurrency assets are very attractive to investors who are wary of centralized fiat currency. Cryptocurrency assets may therefore be a great opportunity to diversify one’s portfolio beyond traditional stocks, bonds, and mutual funds.
BitGo Did Not Proceed With their Kingdom Trust Acquisition
In January 2018, BitGo announced that they wanted to acquire Kingdom Trust as the qualified custodian could attract as much as $20 billion from institutional investors. However, as seen on a Medium post in May 2018, BitGo mentioned that it was “seeking a charter to build BitGo Trust,” a “new regulated qualified custodian.” It would therefore no longer acquire Kingdom Trust and after receiving the approval of the acquisition.
“We spent a lot of time over the course of this working with customers because ultimately that’s who we’re going to be serving and we realized they would be best served by a custodian who was entirely focused on their assets, so our focus has been to create a fully qualified independent digital custodian,” said Robin Verderosa, the Product Marketer at BitGo, in the medium post.
According to Bloomberg, BitGo partnered with Kingdom Trust approximately two years ago. The partnership was fairly strategic as BitGo understood the technological side, while Kingdom Trust had the regulatory experience. While BitGo is not proceeding with the Kingdom Trust Acquisition, they are however, working very closely with regulators.