Bakkt Now Approved to Custody Bitcoin for Institutional Investors

Intercontinental Exchange (ICE)-backed cryptocurrency exchange, Bakkt, announced today that it has gotten approval from the New York Department of Financial Services (NYDFS) to offer its bitcoin custody service to institutional investors. 

In an announcement on its Medium blog, the exchange stated that its storage facility named the ‘Bakkt Warehouse,’ which was previously used by investors trading the Bakkt Bitcoin Futures contracts would now be made available for its institutional client base.

As per the announcement, Bakkt further noted that its custody service is currently being utilized by reputable firms, including Galaxy Digital, Pantera Capital, and Tagomi, with the exchange, hoping that more firms to adopt the service in coming weeks. 

A section of the announcement read,

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

In addition to the technological prowess that the Bakkt Warehouse is expected to offer, the exchange noted that it uses various physical means to provide additional security and improve the overall functionality of the warehouse.

Bakkt’s Anticipated Bitcoin Option Contract Launch

The latest news from Bakkt comes as the exchange is also gearing up to launch a regulated option contract for bitcoin futures, which is scheduled to go live on December 9. 

As Coinfomania reported at the time, Bakkt stated that the move was based on persistent users’ requests to develop a bitcoin option contract that is based on the benchmark of Bakkt’s Monthly Bitcoin Futures contract.

“The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors,” Bakkt CEO, Kelly Loeffler said.

Bakkt is not the only firm working toward launching Bitcoin Options as CME Group also announced recently that its Bitcoin Options is scheduled to go live in the first quarter of next year.  

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