Bakkt Launches Custody Services for Institutional Clients
- After receiving the green light from the N.Y. Department of Financial Services, Bakkt opened its custody services to its entire client base.
- Pantera Capital, Galaxy Digital, and Tagomi have already decided to use the Bakkt Warehouse as their digital asset custodian.
Adam White, former vice president and general manager Coinbase, now COO at Bakkt. XBT
Intercontinental Exchange’s institutional Bitcoin trading platform Bakkt has launched its custody services for its entire client base, the company announced in a blog post on 11 November.
According to the report, the firm received authorization from the N.Y. Department of Financial Services (NYDFS) to offer its custody services to all institutions, and not only to clients that traded its Bitcoin futures contracts.
Some have already chosen to use the Bakkt Warehouse as their digital asset custodian, such as Pantera Capital, Galaxy Digital, and Tagomi, and more are expected to join in the coming weeks.
Bakkt’s COO Adam White wrote in the blog post:
“Safely storing digital assets demands a comprehensive approach to custody. Institutions and sophisticated investors need more than cutting-edge technology. They require proven infrastructure, robust operational controls, and independent oversight.”
These news come only a month after Bakkt started offering its long-awaited physically delivered Bitcoin offerings. The company also previously revealed that the Bitcoin deposits at its warehouse is protected by a $125 million insurance policy.
A couple of weeks ago the company also announced that it is working on a consumer app, which will allow its users to purchase goods using digital assets, with Bitcoin being one of many options.
The app has been scheduled to go live sometime in the first half of 2020, with Starbucks being the first major retailer to commit to it.
The Chicago Mercantile Exchange (CME) Group, which began offering Bitcoin futures in 2017, revealed last month that it is planning to add Bitcoin options contracts some time in the first quarter of 2020.
The exchange has claimed to have 20 successful futures expiration settlements, and more than 3,300 individual accounts trading the contracts since 2017.
- Germany’s largest bank will use Taurus’ custody and tokenization technology to manage the cryptocurrencies, tokenized assets, and digital assets of its clients.
- Deutsche Bank was one of a few companies to participate in Taurus’ $65 million Series B fundraising round back in February, which was led by Credit Suisse.
Deutsche Bank headquarters in Beijing, China on April 3, 2019. Shutterstock
- Trustology, which will be rebranded to Bitpanda Custody, is Bitpanda’s maiden acquisition worth tens of millions of dollars.
- Bitpanda plans to begin its newly announced crypto custody services by taking custody of all its assets across its retail and institutional businesses.
- While the pilot will be limited to certain Quiznos locations in the city, customers will be able to receive a $15 BTC reward for paying with Bitcoin.
- The pilot was made possible through a partnership with Bakkt, and could be expanded to other locations in the country should it be successful.