- Bakkt’s warehousing made available for all institutions
- Major companies choose Bakkt’s warehouse for the custody of their digital assets
- Security measures for the Bakkt’s warehousing are spot on
Bakkt, a bitcoin trading platform, has been officially authorized by the New York Department of Financial Services to provide bitcoin custody to all institutions.
This will further increase the platform’s authority, which serves as custody and a critical link in the institutional adoption of bitcoin. This authorization is the benchmark for Bakkt, enabling it to prove institutions with a bitcoin futures platform that is well established and regulated.
Bakkt Warehousing Solution
Bakkt’s warehousing solution was launched in September. However, this service was only reserved for clients trading Bakkt’s Bitcoin Futures Contracts. From now on, Bakkt’s warehouse will be made available for all institutions.
Clients around the world can now preserve their assets by the use of Bakkt’s enterprise-grade offering. This is rather exciting news as safe storage for digital assets has been lacking. Bakkt will not only make use of sophisticated technology but also of the appropriate infrastructure, independent oversight as well as operational controls to ensure the safety of the assets.
Security of the Warehousing Solution
There are on-site data centers and great network connectivity between operational sites. This eliminates the need for a third-party data center and multi-tenant systems. More security infrastructure for the warehouse is the biometric bank-grade vaults and hardware security modules, which ensure both availability and security of the funds. Bakkt’s funds are also secured by a $125 million insurance cover.
Because of such security measures, several companies are considering Bakkt as the custodian of their digital assets. Some of these companies include Tagomi, Pantera Capital, and Galaxy Digital. In the coming weeks, Bakkt will be bringing more firms onboard on the custody offering.
The fact that Bakkt is audited by third parties regularly is also a security measure. Bakkt is regulated by NYDFS with a mostly independent board for examining committees and audits. Operational facilities are closely monitored throughout, with armed guards, video surveillance, security operations, and incident response teams. Primary and secondary facilities are geographically distributed to ensure that the systems can support all production workloads as well as are capable of disaster recovery.
Bakkt’s relationship with ICE is also an additional pointer. ICE or Intercontinental Exchange owns and operates the market infrastructure the world’s most prominent financial institutions rely on. The fact that Bakkt, is being backed by ICE, we can say without a doubt that Bakkt regulated warehouse will provide institutions with the security they have been looking for, and it is a step in the right direction.