Bakkt, the cryptocurrency exchange founded by Intercontinental Exchange (ICE), has now made its institutional crypto custody service, Bakkt Warehouse, available to all market participants following new regulatory approvals.
Previously, only clients trading the Bakkt bitcoin futures contracts could use this custody service, but now the exchange has received authorisation from the New York Department of Financial Services (NYDFS) to offer bitcoin custody to all institutions.
“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,” says Adam White, COO of Bakkt, in a blog post announcing the news.
Among the first to choose the Bakkt Warehouse as their digital asset custodian are Pantera Capital, Galaxy Digital and Tagomi.
“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,” says White.
“While technology provides the foundation by which we securely store customer funds, the Bakkt Warehouse employs extensive physical, operational and cybersecurity safeguards too. Our relationship with Intercontinental Exchange, a Fortune 500 company that owns and operates the market infrastructure upon which the world’s largest financial institutions already rely, enables us to uniquely address client needs in the digital asset custody space,” he adds.