Intercontinental Exchange Bakkt is now looking towards most awaited launches in Crypto space, just because it is providing fully regulated physically delivered Bitcoin Futures. Crypto trading platform Bakkt has acquired a Crypto custodian service DACC, the firm declared on April 29.
Digital Asset Custody Company [DACC] is basically a custodian which safeguards the digital currencies to offer better security to its customers. Especially, DACC offers custody solutions to cover EOS, which is the 5th largest cryptocurrency in the world in terms of market cap.
In a blog post, Bakkt has been continuously working for two years to offer custody solutions to its customers and it would be using the similar operation control methods, cybersecurity, and institutional grade hardware used by ICE, along with the acquisition of Digital Asset Custody Company (DACC).
Adam White stated in a blog post, in order to provide DACC's native support for 13 block chains and 100+ assets developed to "serve as an important accelerator", the whole DACC team will be joining Bakkt.
At the same time, White also mentioned that Bakkt has filed an application with the New York Department of Financial Services to function as a trust company, which will allow the firm to assist as a Qualified Custodian for digital assets.
Particularly, Bakkt also stated that the firm is planning to release physically-delivered Bitcoin Futures(BTC), including contracts set to be traded on ICE Futures US (IFUS) and cleared on ICE clear US (ICUS), a federally managed exchange and clearinghouse organized by the United States Commodity Futures Trading Commission (CFTC).
Moreover, Bakkt will utilize both hot and cold wallets to protect its user's funds, where most of the funds are kept in the cold wallets which are insured with $100 million policy "underwritten by global insurance chains". This wallet structure also provides on-chain and off-chain security measures "to safeguard cryptographic keys, along with enforcement of multi-signature controls."
Apart from acquiring DACC, Adam White, COO of Bakkt stated,
"Additionally, Bakkt is working closely with BNY Mellon to offer geographically-distributed storage of private keys secured by the bank. BNY Mellon has a longstanding history of safeguarding the assets of institutional clients such as hedge funds, asset managers, and broker-dealers, and we’re excited to work with them."
Bakkt has lately applied for the qualified custodian license with the New York Department of Financial Services. The license will enable Bakkt to offer regulated custodial services for crypto assets.
