Bitcoin Custody Product Announced By Bakkt, But It Asks More Questions Than It Answers

• Bakkt revealed this week that it is launching its custodial services for institutional enterprises

• The Bakkt Warehouse is currently open to all clients across the globe who are looking to secure their crypto investment. 

• Some of these clients include Pantera Capital, Galaxy Digital, and Tagomi.

The bitcoin futures platform backed by the Intercontinental Exchange (ICE), Bakkt revealed this week that it is launching its custodial services for institutional enterprises. Bakkt aren’t the first company to start to providing bitcoin custody, however, the firm believes it could push forward mass adoption of the technology.

Speaking in a post published on Medium, Adam White, the COO of Bakkt announced that it has received the green light from the New York Department of Financial Services (NYDFS) to offer bitcoin custody to all institutions. The Bakkt Warehouse is currently open to all clients across the globe who are looking to secure their crypto investment. 

White says that this was what was missing in the mainstream 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.”.

The Bakkt Warehouse is going to start offering its services to a widespread of clients along with its $125 million insurance policy. 

Some of these clients include Pantera Capital, Galaxy Digital, and Tagomi. Over the next few weeks, we expect to see more clients getting involved in the coming weeks.

As reported by CCN:

“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, financial advisers, and hedge funds.”

It will be interesting to see how this plays out with Bakkt. For more news on this and other crypto updates, keep it with CryptoDaily!