- Bakkt launched its institutional custody services.
- The Bakkt Warehouse launched with a robust insurance policy and a range of clients.
- Bakkt’s daily trading volume is picking up.
Bakkt, a bitcoin futures exchange backed by the Intercontinental Exchange (ICE), announced that it is launching custodial services for institutional enterprises. This is not the first organization to provide bitcoin custody, but the firm believes that it would set the stage for the mass adoption of the technology.
The Bakkt Warehouse
In a blog post, Bakkt announced that it received authorization from the New York Department of Financial Services (NYDFS) to offer bitcoin custody to all institutions. Now, the Bakkt Warehouse is open to all clients around the world who are looking to secure their bitcoins. According to the firm, this was the missing link in the institutional adoption of bitcoin.
A critical link — perhaps the critical link — in the institutional adoption of bitcoin is custody. When investors have ready access to regulated custodians whose security and processes they trust, the full potential of this emerging asset class and technology can flourish.
With a $125 million insurance policy, the Bakkt Warehouse will begin offering its services to a range of clients. These clients include Pantera Capital, Galaxy Digital, and Tagomi. More clients are set to be onboarding in the coming weeks.
Custody Services Market
Despite entering the custodial services market with big names behind it, the Bakkt Warehouse is not the only one with such clients.
Fidelity Investments, one of the world’s largest financial services providers with more than $7.2 trillion in client assets under administration, launched Fidelity Digital Assets in October. This is an enterprise-quality custody and trade execution services for family offices,