Roughly two weeks after rumours emerged that crypto startup, Bakkt will apply for a crypto custodian license with New York regulators, the startup has confirmed its submission of an application in that regard.
Bakkt’s Chief Operating Officer (COO), Adam White notably wrote in a Medium post on April 29,
“To provide regulated custody, we have filed with the New York Department of Financial Services for approval to become a trust company and in this capacity serve as a Qualified Custodian for digital assets”.
Coinfomania earlier reported that the reason for the continued delay of the Bakkt platform is a glitch with the U.S Commodity and Futures Trading Commission (CFTC) regarding the startup’s plan to custody its client’s asset instead of using a third-party.
However, obtaining a license from the New York Department of Financial Services (NYDFS) will give the startup the regulatory approval it needs to function as a crypto custodian while delivering its long-awaited physically settled Bitcoin contracts.
Bakkt Acquires Digital Asset Custodian Company To Strengthen Custody
Despite the impending acquisition of a custodian license from New York regulators, COO Adam White also announced in the update that Bakkt had acquired Digital Asset Custody Company (DACC), a regulated custodian service focused on Bitcoin and cryptocurrencies.
As per the announcement, the acquisition of DACC will allow Bakkt to expand its offering in the future with the latter already offering native support of 13 blockchains and 100+ assets.
Although Bakkt as in other recent updates did not provide a possible launch date for their platform, it reaffirmed that launching a regulated custodian for digital asset is part of its primary objective with more progress expected in the coming months.
The startup also expressed the belief that by complying with all necessary regulatory requirements before launch, it will be able to deliver a one-stop solution that institutional investors can rely on while engaging with cryptocurrencies.