Bakkt exchange announced today they are opening the Bakkt Warehouse to all institutions.
The regulated bitcoin custodian and bitcoin futures exchange published an announcement today stating that their qualified custodian of bitcoin, Bakkt Warehouse, which prior to today only served its clients that traded the Bakkt Bitcoin Futures contracts, is now available to all institutions.
According to the announcement, Bakkt has received authorization from the New York Department of Financial Services (NYDFS) to offer bitcoin custody to institutions all around the world, allowing them to “safeguard their assets using Bakkt’s enterprise-grade offering.”
As reported by Bakkt COO Adam White, Bakkt’s relationship with Intercontinental Exchange (NYSE: ICE), “a Fortune 500 company that owns and operates the market infrastructure upon which the world’s largest financial institutions already rely, [enables the firm] to uniquely address client needs in the digital asset custody space,” in which are included needs related to enterprise-grade infrastructure, operational controls, and independent oversight.
Among the features provided by the custodian are “on-premises data centers and dedicated network connectivity between operational sites,” and geographically-distributed primary and secondary facilities that are capable of managing all production workloads, including disaster recovery.
Additionally, the firm provides operational facilities protection with “24x7 video monitoring, armed guards, and security operations as well as incident response teams.” In relation to independent oversight, the Bakkt Trust Company is “regulated by the NYDFS and has a majority-independent board, including audit and examining committees,” as well as a $125M insurance policy secured by a global insurers syndicate.
Some of the Bakkt Warehouse’s first clients include Pantera Capital, Galaxy Digital, and Tagomi, with additional marquee firms joining the custody offering in the upcoming weeks.
The much-anticipated Bakkt bitcoin futures launched in September and experienced low trading volumes at first. However, during October, the platform’s trading volume increased gradually, continuously breaking its own records. Bakkt’s bitcoin futures contracts trading all-time high was registered on Nov. 9, trading 1,741 contracts on that day, estimated to be worth around $15.5M.
Other upcoming Bakkt developments include the launch of the first regulated options contracts for bitcoin futures, scheduled for Dec. 9, and a consumer app, which will be tested first with Starbucks, expected to launch sometime during the first half of 2020.