Institutional trading platform Bakkt has announced its plans to acquire a crypto custody service. The company, aptly named Digital Asset Custody Company (DACC) – will help Bakkt securely store digital assets for its clients.
In the same blog post, Bakkt also revealed that it is working with BNY Mellon to offer distributed storage of private keys stored by the bank. The platform also shed light into its wallet architecture and key security practices.
In addition, the company stated that its first product – physical delivery Bitcoin futures – will be traded on Intercontinental Exchange (ICE) Futures US (IFUS) and cleared on ICE Clear US (ICUS), a federally regulated exchange and clearinghouse regulated by the CFTC. The Bitcoin delivered upon contract settlement will be stored by Bakkt.
In order to provide regulated custody, Bakkt has filed with the New York Department of Financial Services for approval to become a trust company and serve as a Qualified Custodian for crypto assets.
Bakkt leverages the same institutional-grade hardware, operational controls, and cybersecurity systems that ICE uses to manage all thirteen of its regulated exchanges worldwide, including the New York Stock Exchange. While we’ve leveraged ICE’s expertise developing and operating institutional-grade products, we’ve also tailored our custody offering to protect against risks unique to the crypto space.Adam White, COO Bakkt
The Bakkt platform is expected to launch sometime later this year.